Chancellor Friedrich Merz addressed the challenges and priorities of his administration during a speech at the CDU party congress in Osnabrück on Saturday, emphasizing a strong focus on foreign policy alongside domestic concerns. He asserted that, given Germany’s export-driven economy, a solely inward-looking approach is unsustainable. “We must be present abroad – not just with our economy, but also with our politics” he stated, reinforcing that economic policy remains the government’s primary objective.
Merz acknowledged significant and far-reaching issues within the German economy, describing the task of overcoming the current recession as more substantial than initially anticipated. He characterized the economic downturn not only as cyclical but also structural, noting a growing disparity between the performance of the German export sector and the global market over the past decade.
To address these challenges, the government has already initiated what Merz termed “first steps in the right direction” referencing the recently launched “immediate program” which includes enhanced depreciation options for businesses. He firmly rejected calls from the SPD for tax increases on high-income earners, stating the current welfare system is no longer financially sustainable. Merz also indicated an intention to re-emphasize the importance of saving within German society.
Regarding the recent trade agreement between the EU and the United States, Merz described it as “somewhat acceptable” acknowledging that more aggressive negotiation tactics were possible but praising its success in averting a potential trade war. Looking forward, the Chancellor underscored the need for greater economic and military independence, outlining a vision for Germany to take a leading role on the global stage.