Friedrich Merz warns of economic decline in Germany: Experts are sounding the alarm

Friedrich Merz warns of economic decline in Germany: Experts are sounding the alarm

According to a report by www.zeit.de, CDU chairman Friedrich Merz warns of Germany's economic decline and calls on the federal government to act. He emphasizes that unemployment figures have increased despite the shortage of skilled workers and that bankruptcies in the first half of 2023 were 16 percent higher than the previous year, while industrial production is declining.

Germany's visible deindustrialization and loss of competitiveness are serious signs of threatening economic development. Carsten Linnemann, designated general secretary of the CDU, criticizes the federal government for focusing primarily on immigration from abroad to deal with the shortage of skilled workers while neglecting the domestic potential. Linnemann suggests using incentives to encourage older people to postpone retirement and stay in the labor market. He also emphasizes that the current citizen's benefit scheme is not sufficient and that an obligation to pay should be introduced.

These facts illustrate the urgency for the federal government and the German market to address the problem of skills shortages and deteriorating competitiveness. The neglect of domestic potential and the hesitant response to deindustrialization may lead to a continued deterioration of the German economy. It is therefore crucial that the federal government responds quickly and effectively to the concerns and suggestions raised in order to reduce the risk of Germany's economic decline.