Chancellor Friedrich Merz addressed the challenges and priorities facing Germany during a speech at the CDU party conference in Osnabrück on Saturday, emphasizing a strong focus on foreign policy alongside domestic issues. He stated that, given Germany’s export-oriented economy, a solely inward-looking approach is not viable and active political engagement abroad – complementing economic presence – is essential. Merz affirmed that economic policy remains the central priority of his government.
The Chancellor acknowledged significant and far-reaching problems within the German economy, characterizing the task of overcoming the current recession as more substantial than initially anticipated. He described the situation as stemming from both cyclical and structural weaknesses, noting that Germany’s export-dependent economy has been falling behind global competitors for a decade.
Merz highlighted initial steps taken to address these challenges, referring specifically to the recently launched “Immediate Program” which includes enhanced depreciation options for businesses. He firmly dismissed calls from the SPD for tax increases on high-income earners, asserting the unsustainability of the current social welfare system. The Chancellor indicated a government intention to re-emphasize the importance of saving for future generations.
Regarding the recent trade agreement between the EU and the United States, Merz characterized the outcome as “somewhat acceptable” acknowledging that a more assertive negotiation position was possible but that a potentially escalating trade war had been avoided. He concluded by outlining a long-term vision of achieving greater economic and military independence for Germany, with the goal of positioning the nation as a leading global actor.
