Cyprus Times

German Economy in 'Very Critical' Condition, Says Chancellor

Published January 6, 2026, 18:08
German Economy in 'Very Critical' Condition, Says Chancellor

German Chancellor Friedrich Merz has described certain sectors of the German economy as being in a 'very critical' condition in a letter to CDU/CSU and SPD parliamentarians. In the letter, Merz outlines his priorities for 2026, emphasizing economic recovery and improving competitiveness. He acknowledges that previous policies have not yielded the expected results and stresses the need for new, correct decisions. According to the Chancellor, high labor and energy costs, as well as bureaucracy and taxation, are significant obstacles to growth. Solving these problems, he emphasizes, will boost confidence in politics and promote social cohesion. Merz also reiterates his commitment to continuing support for Ukraine, while simultaneously seeking a ceasefire that safeguards Ukrainian sovereignty. This letter is a clear indication of the German government's concern about the current economic situation and its determination to take steps to address it. The Chancellor's letter is an internal communication with parliamentarians, but its publication underscores the importance given to the economic challenge and the need for a joint effort to address it.