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China Daily / 2025-03 / 14 / Page011

Merz bets on investment fund to shore up economy

China Daily | Updated: 2025-03-14 00:00
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BERLIN — Germany's likely next government under conservative leader Friedrich Merz has said it plans a shot in the arm for the flagging economy with a huge program of investment in defense and infrastructure.

But economists warn that Europe's largest economy will also need structural reforms for a sustainable recovery after two straight years of recession.

Both Merz's center-right CDU/CSU and the center-left SPD, who are in talks on forming a coalition, say they want to restore industrial competitiveness.

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