German Chancellor sees signs of recovery in his country's economy
Berlin, Aug 26 (KUNA) – German Chancellor Friedrich Merz said on Wednesday that he sees signs of recovery in Germany’s economy, the largest in Europe, and affirmed that the government would place economic growth at the top of its priorities in the coming period.
Speaking after concluding two-day government consultations at the Neuhardenberg Palace in the neighboring state of Brandenburg, Merz stated, “Germany has emerged from three years of recession, and the economy has now begun to grow and recover.”
According to Merz, his coalition government, comprising his conservative party and the Social Democrats, will focus its full efforts on economic growth. He emphasized that the government enters the remaining months of 2026 with greater capacity to act and strong confidence. He expressed confidence that the government would achieve further progress in the near future, hoping to present a positive assessment by the end of the year that reflects Germany’s exit from recession, economic weakness, and public discontent.
These remarks came a day after Germany’s Federal Statistical Office announced that the country’s economy grew by 0.3 percent in the second quarter, following an earlier report from Germany’s largest economic research institute, ifo, which indicated an improvement in its manufacturing export index.
On the economic and social impacts of the severe heatwave, Merz confirmed that his government currently has no plans to allocate additional funds to finance heat protection measures, as Germany already has adequate programs and funding for this purpose. He stressed that government policies are not limited to climate protection but also include adaptation to its effects, warning that severe heatwaves will become more frequent in the future. He noted that while Germany cannot single-handedly curb global climate change, it is obligated to better prepare for its consequences.
In a separate development, the German Chancellor affirmed that the ruling coalition is seeking consensus on pension system reform, stressing that the proposals of the expert committee will be fully implemented. Merz again rejected calls from members of his party to retain what is known as “early retirement at age 63,” stating that the coalition committee had already agreed to fully implement the pension reform and that the government would continue to adhere to this agreed path. (End) E.N.J./A.M.S.
