Chancellor Merz Acknowledges Communication Shortcomings and Urges Changes in Work Culture

German Chancellor Friedrich Merz has conceded that the government has faced challenges in effectively communicating its policies and objectives. Addressing business leaders in Halle, Merz emphasized the need for the governing coalition to enhance transparency and ensure the public is better informed about governmental actions and reforms.

Merz noted that the coalition is aware of the economic concerns and apprehensions affecting both private households and businesses across Germany. He outlined intentions to improve communication strategies, ensuring policies are more clearly explained and that citizens are actively engaged in the process of national reform.

The Chancellor has previously called for a period of significant reform, aiming to shift the national mood and spur economic growth. Despite these intentions, various economic associations have expressed dissatisfaction, criticizing the government for not implementing sufficient measures to revitalize the economy. Issues such as the delayed appointment of new judges to the Federal Constitutional Court and debates regarding pension reforms have also contributed to ongoing disputes within the coalition.

Germany's economy continues to experience a prolonged phase of stagnation. However, Merz pointed to some positive trends for 2026, including a drop in the inflation rate to below two percent by the end of 2025, a rise in the formation of new businesses, and a marked increase in industrial orders, particularly among small and medium-sized enterprises in the closing months of the previous year. Despite these optimistic indicators, he cautioned against excessive pessimism, stressing the importance of focusing on constructive solutions.

In his address, Merz reiterated his stance that the current level of work output in Germany is insufficient to maintain the country's prosperity. He expressed concern over the growing prevalence of work-life balance initiatives and the adoption of the four-day work week, arguing that these trends may jeopardize long-term economic stability. Merz advocated for extended working hours, suggesting that increased collective effort is essential for enhancing the nation's overall productivity.

Drawing a comparison with neighboring Switzerland, Merz highlighted that Swiss workers average approximately 200 more work hours annually than their German counterparts. He argued that there are no fundamental differences between the populations to justify the discrepancy in working hours, attributing it instead to economic and cultural factors. The Chancellor also addressed the issue of high labor costs in Germany, suggesting that these must be reduced to support economic competitiveness.

Merz referenced recent government legislation enabling individuals to continue working beyond the standard retirement age with favorable tax conditions. He indicated that many citizens are physically capable of pursuing extended employment and that such measures could contribute positively to the labor market. According to Merz, these steps are part of a broader governmental strategy to gradually implement decisions aimed at restoring Germany's economic vitality.

Overall, the Chancellor's remarks signal a commitment to both improving government communication and adjusting the national work ethic in an effort to stimulate growth and address current economic challenges.