Insights | Macro

Federal Chancellor Merz announces new direction of economic policy

May 2025

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Germany is in crisis. After two years of slight economic contraction, the economy is going to stagnate in 2025. In his first government statement, Federal Chancellor Friedrich Merz announced a new economic policy direction. However, the speech did not provide any new insights. Merz spread some market friendly reform optimism and announced a new basic understanding that should be characterized by trust – instead of mistrust – in citizens and companies.