Merz presents bold economic plans: A new chapter for Germany!

Merz presents bold economic plans: A new chapter for Germany!

Today, May 14, 2025, Chancellor Friedrich Merz (CDU) made his first government statement, which received a great response. The business associations welcomed the announced economic policy as an “important signal” for the German economy. Crafts President Jörg Dittrich praised the federal government's new tone in dealing with citizens and called for quick decisions from the black-red coalition.

In his speech, Merz explained the challenges facing the German economy. Several institutes had previously published mixed assessments of the current situation. BDI President Peter Leibinger called for planning security for companies, especially before the summer break. He expressed specific demands, including the introduction of a law on declining balance depreciation, a rapid reduction in electricity tax and the abolition of the gas storage levy.

Demands of business representatives

Leibinger also called for a capped network fee regulation through state co-financing and a reduction in the burden of bureaucracy. The new federal government plans to promote investment, reduce energy costs and reduce bureaucracy. DIHK President Peter Adrian described many of Merz's measures as "overdue" and made similar demands, which include a reduction in bureaucracy, faster approvals, lower energy costs, special depreciation and investments in infrastructure.

Merz called for a joint effort to combat the recession and slow growth and emphasized that Germany was able to get out of the weak growth on its own. A central concern of his government is the dilapidated infrastructure, which Merz identified as one of the core problems of the German economy. The coalition plans to invest up to 150 billion euros to repair and expand infrastructure, with particular attention to transport routes, schools, research institutions and the modernization of lifelong learning and vocational training.

Long-term investment strategy

Merz made it clear that additional money from the private sector and the capital markets would be needed to implement these projects. A twelve-year investment program is intended to offer companies reliability and planning. Merz pointed out that the government's high debt can only be justified by a permanent increase in the value of the infrastructure.

In summary, today's government statement by Friedrich Merz can be interpreted as both a prelude to a new economic policy and a call for cooperation in the next challenging months. A strong signal for the economy and the citizens in Germany.

For further detailed information see the reporting by ZDF and South German newspaper.