German Chancellor Friedrich Merz on Wednesday urged citizens to prepare for sweeping reforms in the coming months as his government moves to address the mounting challenges facing Europe's largest economy.
One of the toughest tasks for Merz and his ministers will be to find ways to return to economic growth after two consecutive years of recession.
Businesses continue to struggle with high energy prices, diminished demand and new U.S. tariffs, with many continuing to slash their forecasts and jobs in response.
Merz, who was addressing parliament during budget week, acknowledged the gravity of the situation.
"The decisions that lie ahead of us are not about details, but about very fundamental issues," he said.
