FT: Merz faces backlash from industry amid economic stagnation

According to the Financial Times, German Chancellor Friedrich Merz faces mounting pressure as frustration grows over the lack of visible economic progress. Industry leaders accuse his government of inaction, high taxes, and soaring energy costs. “The mood in manufacturing is not just tense — it is furious,” said VDMA chair Bertram Kawalath.

Source Financial Times

Germany’s economy remains stagnant, having lost 245,000 industrial jobs since 2019. Despite Merz’s Keynesian-style spending plan aimed at reviving growth, industrial output and business sentiment continue to weaken, raising concerns about a prolonged slump.

Meanwhile, the far-right AfD has surged to 25% in national polls, while Merz’s approval ratings are falling. Analysts warn that without bold reforms and tangible improvements, his government could lose public trust — and Germany’s patience.