Why Germany’s Economic Revival Isn’t Happening

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Six months on since Merz took office, the German economy continues to stagnate. In this video, we’re taking a look at why Merz’s spending plans don’t appear to be working, how it’s impacting his approval ratings and whether things could change.

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Sources:

Merz’s ‘debt brake’ borrowing reforms
https://on.ft.com/4ozYKSJ
https://www.euronews.com/business/2025/03/05/germany-to-ease-government-debt-limits-to-boost-economy-and-defence-spending
https://www.politico.eu/article/germanys-merz-secures-breakthrough-on-historic-spending-plan/
https://www.economist.com/europe/2025/03/20/the-bundestag-approves-the-biggest-fiscal-expansion-in-post-war-history

Merz accused of using borrowing to fund tax cuts
https://www.ft.com/content/3d1ca4ee-f611-495d-994b-bc782b334bf5

Germany economic outlook & business confidence
https://www.schwab.com/learn/story/what-happened-to-germanys-spending-boom
https://www.reuters.com/world/europe/german-business-sentiment-unexpectedly-falls-november-ifo-survey-finds-2025-11-24/
https://www.reuters.com/business/retail-consumer/german-investor-morale-declines-unexpectedly-november-zew-finds-2025-11-11/

CDU pensions row
https://www.theguardian.com/world/2025/nov/18/pension-reform-row-threatens-germanys-coalition-government

Comment/Analysis
https://www.economist.com/europe/2025/10/23/germanys-much-ballyhooed-autumn-of-reforms-is-a-damp-squib
https://www.ft.com/content/096b7930-3535-4ac9-8eb5-fb7b50f33bc0
https://www.theguardian.com/commentisfree/2025/nov/17/the-guardian-view-on-germany-under-merz-europes-powerhouse-is-still-struggling

German Council of Economic Experts report (November 2025)
https://www.sachverstaendigenrat-wirtschaft.de/en/annualreport-2025.html

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