Germany's Economic Crisis Deepens as Experts Demand Urgent Reforms
Germany's economic struggles could worsen unless major reforms are introduced soon. That's the stark warning from economist Thomas Müller, who claims the country risks sliding into a deeper crisis. His comments come as businesses and EU leaders push for urgent changes to revive growth.
Müller points to Germany's stagnation since the Agenda 2010 reforms, noting that growth has lagged behind other industrial nations. In 2026, under Chancellor Friedrich Merz, companies have voiced frustration over high taxes, heavy regulations, and a lack of trust in the economy. EU Commission President Ursula von der Leyen has also called for reforms to address these long-standing issues.
He criticises the government's reliance on non-governmental organisations (NGOs) to handle key tasks. Instead, Müller proposes bringing groups like German Environmental Aid and Friends of the Earth Germany directly into ministries. This, he argues, would streamline decision-making and reduce inefficiency.
His warnings go further, describing Germany as a 'nation of egoists' where too many citizens depend on state support rather than taking responsibility. Without change, he fears the country could become a 'DDR 2.0'—a reference to East Germany's centrally planned economy. Müller also cautions against expanding the welfare state, arguing it could discourage personal initiative and deepen economic troubles.
The economist's remarks highlight growing concerns over Germany's economic direction. Business leaders and EU officials agree that reforms are needed to cut bureaucracy, lower taxes, and restore confidence. Without action, the risk of prolonged stagnation—or worse—remains.
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