ER Editor: From the Horse’s Mouth.
Deutsche Welle (DW) also has this from two days ago —
German welfare state ‘can no longer be financed’ — Merz
German Chancellor Friedrich Merz has called for a reform of Germany’s social welfare spending while ruling out tax increases on medium-sized companies.
The comments, made at a state-level party conference of his Christian Democratic Union (CDU) in Lower Saxony on Saturday, will likely be seen as paving the way for further contention with his government coalition partners, the Social Democrats (SPD).
…
“The welfare state that we have today can no longer be financed with what we produce in the economy,” Merz said in the town of Osnabrück.
German Chancellor Friedrich Merz, addressing supporters of his party (CDU) in Osnabrück, declared that Germany is no longer experiencing a temporary economic downturn, but is in a deep structural crisis!
Merz stressed that German products are still of very high quality, but that… pic.twitter.com/nmDPIwrAp3
— Sprinter Express (@SprinterExpres0) August 24, 2025
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German economy in structural crisis – Merz
Tackling the challenges the country is facing has proven harder than expected, the German chancellor has admitted
RT
The German economy is experiencing a “structural crisis” rather than just temporary “weakness,” Chancellor Friedrich Merz has said, admitting that steering the country’s economy back on track has proven harder than he had anticipated.
Merz made the remarks on Saturday in a speech before members of his Christian Democratic Union party in the Lower Saxony city of Osnabrueck, the home state of major carmaker Volkswagen.
“I say this also self-critically – this task is bigger than one or the other may have imagined a year ago,” Merz stated.
We’re not just in a period of economic weakness, we are in a structural crisis of our economy.
Large parts of the country’s economy “are no longer truly competitive,” the chancellor acknowledged. Merz mentioned the plummeting earnings by Volkswagen, which experienced a massive 36% after-tax slump in the second quarter of the year, calling it just “one of many messages” about the state of the country’s economy.
“By this week at the latest, no one should be under any illusions about how deep and far-reaching the challenges that face us are,” Merz stated.
“The quality is still good and company leaders recognize these challenges. But the underlying conditions in Germany simply haven’t been good enough for the last decade,” he added.
Another German auto giant, BMW, has also reported a sharp decline in first-half profits, reporting a 29% drop from the same period last year.
The downturn of the country’s automotive sector has been fueling fears about the health of the EU’s economic powerhouse. The country already endured a recession last year and is now expected to show zero growth this year, according to IMF projections.
Source
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Published to The Liberty Beacon from EuropeReloaded.com
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