Industrialists became disillusioned with government policies, while the popularity of the right grew
German Chancellor Friedrich Merz has been unable to implement promised reforms and lift the country out of economic stagnation. The ambitious Agenda 2030 plan never materialized, despite declarations of intent to revive the German economy.
At the annual meeting of the German Union of Mechanical Engineers, the Chancellor was harshly criticized. The head of the union, Bertram Kavlat, expressed the industrialists' dissatisfaction. According to him, companies are forced to cut jobs due to the inaction of politicians. According to the Financial Times, Kavlat called on Merz to take decisive action and said the time for small adjustments was over.
The German economy is experiencing its longest period of stagnation since the end of World War II. Industry is losing jobs and the popularity of the right-wing party Alternative for Germany is growing.
On the international stage, Friedrich Merz is trying to appear a confident leader, discussing with his partners Europe's response to the Russia-Ukraine conflict and Donald Trump's trade tariffs. However, his position at home is precarious: the prime minister faces growing skepticism and impatience from the public and coalition partners.
High expectations from the new government were not met. Germany is balancing budget problems, bureaucracy and an industrial downturn, adding to public disillusionment.
