The German federal government plans to tackle the current economic crisis with reforms across six distinct areas, according to a new annual economic report highlighted by the Thursday issue of the “Handelsblatt”. Finance Minister Katherina Reiche (CDU) will present the plans on Wednesday afternoon.
The report outlines six “policy‑action and reform fields” aimed at strengthening growth potential:
1. “Reducing bureaucracy” – pulling back over‑regulation and modernising the state.
2. “Infrastructure” – renewing capital stock and increasing site attractiveness.
3. “Innovation” – creating space for start‑ups and new technologies.
4. “Energy” – lowering system costs and ensuring supply security.
5. “Labour supply” – improving incentive structures and reforming social systems.
6. “External economics” – building resilience through diversification and deeper European integration.
The Annual Economic Report is the central policy strategy paper of the government, released at the beginning of each year. Its economic outlook projects only a 1 % growth for 2026, with even weaker prospects for potential growth.