Merkel: Germany is in one of the most challenging stages. Reforms are necessary to drive economic growth.

On September 24, local time, German Chancellor Merkel stated during a general debate on the 2026 federal budget in the Bundestag that Germany is currently in one of the most challenging phases in modern history and must promote economic growth, maintain social stability, and national competitiveness through real reforms. Merkel pointed out that the German economy is currently facing pressure from a lack of growth and lagging reforms, and only by reinvigorating the economy can the government fulfill its social policy commitments. "We need real reforms to ensure the sustainability of the welfare state," he said, emphasizing that this is not only about resource allocation but also the ability to create a higher economic output.