Germany facing ‘most challenging period since the WWII’: Chancellor Merz

Chancellor Friedrich Merz defended his government’s controversial budget cuts and planned overhauls to the social security system as necessary measures Thursday to steer Germany through its toughest period in decades.

“This is probably the most challenging period since the Second World War,” Merz said at a business event in Berlin, saying that multiple global crises, as well as long-standing structural problems of the country, were straining the German economy.

“The world is being reshaped. We are encountering new crises, sometimes on a weekly basis, which expand their scope day by day,” said Merz. “It also affects us directly, right here at home. It causes economic harm, and it demonstrates that we, too, must change.”

The conservative leader defended the coalition government’s planned budget cuts and reforms to the tax system, health insurance and pensions, arguing that the long-delayed changes will lay the groundwork for better conditions for businesses, investment and growth in the decades to come.

“We must adapt together to this new period,” Merz told 200 representatives from German businesses and industries. “More importantly, we must not only adapt, but we must transform ourselves and make our country more resilient.”