Germany’s Merz Issues Business SOS in Letter to Allies

BERLIN: German Chancellor Friedrich Merz has issued a stark warning about the country’s business climate in a letter to parliamentarians within his governing coalition, highlighting urgent challenges facing German industry.
Merz wrote that “the situation of German industry is very critical in some branches,” signaling concern over declining competitiveness, economic uncertainty, and pressures on key sectors. Analysts say the letter reflects growing anxiety in Berlin over slowing industrial output, energy costs, and the impact of global market shifts on Germany’s export-driven economy.
The chancellor’s message is seen as a call to coalition partners for coordinated policy action to stabilize business confidence and support struggling industries, with potential implications for investment, employment, and Germany’s broader economic growth.