US policies raise risk of financial crisis: Merz

Germany's incoming chancellor Friedrich Merz has warned that the United States' trade policies are increasing the likelihood of a financial crisis occurring "sooner than expected", echoing the views of many economists and business leaders.

"The next financial crisis is sure to come. We just don't know when and why," Merz told German business newspaper Handelsblatt in an article published on Sunday.

"President (Donald) Trump's policies increase the risk that the next financial crisis will come sooner than expected," said the 69-year-old, who is set to take power at a time when the German economy has just gone through two consecutive years of recession.