German Chancellor Friedrich Merz has warned that Europe will lose its independence from the world’s economic giants if it does not act quickly to restore competitiveness, Politico reports.
Speaking to the German parliament on the 16th of October, Merz said that the bloc must either carry out economic reforms or risk losing its place in the global economy. The chancellor said that this is very important for both Germany and other European countries, because in the near future it will be decided whether Europe will retain its status as an independent economic power.
Merz is feeling increasing pressure in Germany to do more to help the country recover from its economic malaise. After two years of economic recession, experts do not expect a significant recovery this year. This is partly due to import tariffs imposed by the US, which have hit Berlin’s export-oriented economy particularly hard. Business leaders are calling on the chancellor to introduce more drastic reforms to boost growth.
Merz’s centrist coalition has promised to reform the labour market and welfare,
but in recent weeks the chancellor has also called on Brussels to strengthen the EU’s internal market. He said the EU’s problem was not awareness of the situation, but taking appropriate measures.
The German chancellor said the plan was already available, referring to two studies by former Italian prime ministers Mario Draghi and Enrico Letta on strengthening the EU’s internal market and boosting competitiveness. “These two reports must not disappear into the filing cabinets of the European Commission. They now belong on the European Union’s agenda,” said Merz.
Merz called on the European Commission to negotiate trade agreements within the EU and with other trading blocs around the world. The chancellor also stressed that a trade agreement with South American countries must be concluded by the end of the year.
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