German Chancellor Merz believes economic turnaround is under way

Chancellor Friedrich Merz believes Germany is back on track economically. “We have initiated the turnaround,” Merz told reporters at the traditional summer press conference in Berlin on Friday.

The government’s top priority is to pull the economy out of recession, Merz said, pointing to tax relief measures for companies that have already been decided.

The mood in the economy is improving, Merz said, with leading economics institutions revising their forecasts upwards, and investor interest in Germany as a business location rising significantly.

The federal government wants to ensure that Germany becomes more competitive again, Merz said, referring to the €500 billion ($580 billion) special fund for additional investment in infrastructure and action on climate change.

The decision was not an easy one, he said, but everyone would benefit from it.

On Monday, Merz plans to meet representatives of large companies at the Chancellery in Berlin. The focus of the meeting will be on how to increase investment in Germany.