Germany ‘must change’ to safeguard peace and prosperity, Merz says

Germany must embrace painful structural reforms to safeguard its future amid growing global uncertainty and escalating crises, Chancellor Friedrich Merz said Tuesday.

"We are witnessing today geo-economic upheavals that are colliding with long-standing structural problems," Merz told a congress of German trade union delegates. "These crises demonstrate that we, too, must undergo change," he said.

The conservative leader argued that sweeping structural reforms are needed to restore German companies' international competitiveness, saying jobs ultimately depend on economic growth.

He said improving the business climate would require cutting red tape, increasing infrastructure investment and accelerating digitalization.

"We have simply failed to modernize our country. This is now coming back to haunt us in the shadow of major transformative forces," Merz said. "If we want to preserve our prosperity in the long term, if we want to secure freedom and peace in our country for the long term, then we, too, must change."

Merz appealed to trade unionists to support the government's planned overhaul of the social security system, including changes to pension and health care structures.

He called for a joint search for solutions to move the country forward, saying finding common ground was especially important at this stage.

His remarks drew limited applause and triggered interruptions from delegates, with parts of the audience booing and whistling during the speech.

Some participants also criticized his calls for reform to social security and pension systems.