Chancellor Friedrich Merz has said Germany has the potential to overcome its economic weakness, opening a two-day Cabinet retreat outside Berlin on Tuesday with a call to build on the country's industrial strengths.
"Our country has great potential and there is absolutely no reason to talk ourselves down," Merz said at Neuhardenberg Castle in the state of Brandenburg to the east of the German capital.
Germany still had an excellent industrial base, a strong core of small and medium-sized businesses, a globally respected skilled trades sector and world-class research, Merz said: "And that is exactly what we are building on. We want to use these strengths to enable the growth and employment of tomorrow."
The retreat is focused on Germany's price competitiveness and competitiveness through innovation, with the government seeking dialogue with business leaders.
"We want to get out of our economy's growth slump," Merz said. "We want to enable our economy to recover and create jobs again." Germany had largely the means to achieve this itself, he said. "Germany can hold its own in global competition." But the state must create the necessary and right conditions for that to happen, he added.
The coalition had launched fundamental reforms before the summer recess, though these have yet to be implemented. They include measures to reduce red tape for businesses, strengthen future technologies and boost competitiveness. A package to halt the rise in statutory health insurance contribution rates has already been agreed.
Business associations have long complained about excessive bureaucracy and energy costs that are high by international standards.
