Former head of the German Federal Bank (Bundesbank) Axel Weber, who held the post from 2004 to 2011, sharply criticized the current German government, noting that the country is unable to carry out fundamental reforms.
“I do not see any significant domestic political agenda. We are no longer able to carry out fundamental reforms because of the extremely complex political system, in which compromises must be sought simultaneously at three levels of government. Moreover, for some reforms we will have to change the constitution“, Weber said in an interview with the Handelsblatt newspaper.
He pointed out that this requires broad coalitions and a majority, which simply does not exist in the current political reality. “Germany is unable and unwilling to reform“, he argued the economist.
At the same time, he stressed that Germany's annual production volume is at the level of 2018, and the volume of investments is at the level of 2015. “And only public consumption breaks new records every year“, said Weber. The country, he said, “behaves as if there is no crisis“.
Earlier, German Chancellor Friedrich Merz said that he was confident in his government's policy, despite criticism from business circles, the opposition and even from his own supporters. He announced his intention to achieve rapid implementation of previously planned reforms in the pension, tax and digital spheres.
On August 25-26, the German cabinet is holding a meeting at Neuhardenberg Castle in Brandenburg. The main topics of discussion are economic recovery and support for business, as well as measures to protect against the effects of extreme heat and climate change climate.