German business associations in talks with Chancellor Friedrich Merz stressed the “urgency” of steps to help the ailing economy, one group said on Tuesday, with reports describing a stormy encounter.
Merz has made boosting Europe’s biggest economy a priority but critics charge that, after four months in power, his government is moving too slowly and not living up to its promises of reform.
During a meeting on Monday with leaders of Germany’s four top business associations, Merz faced a dressing-down for failing to take strong action in areas ranging from welfare reform to tackling onerous red tape, Bild reported. None of the groups present commented on the details of the meeting, which took place behind closed doors.
Hammered by a manufacturing slump and weak demand for its exports, Germany’s economy shrank for the past two years and has failed to rebound strongly in 2025 with U.S. President Donald Trump’s tariffs adding to headwinds.
The German Chamber of Commerce and Industry urged the government to speed up planning for large projects while the BDA employers’ federation called for rapid reform of health insurance systems to stop fast-rising contributions, it said. The BDI reportedly pressured Merz to fight for German interests in Brussels while the ZDH group representing the skilled crafts sector urged measures to lessen the burden on SMEs that form the backbone of the economy.
Merz was surprised by the intense criticism and urged patience, saying the government needed time, Bild said. “All sides agreed that the structural reasons for Germany’s weak growth must be addressed as a matter of priority,” he said.
