Crisis on the Horizon: Merz's Economic Warning

Friedrich Merz cautioned that international stock and bond markets may worsen due to President Trump's tariffs. He emphasized the urgency for Germany to boost competitiveness amid coalition talks, advocating for tax cuts, less bureaucracy, and reduced energy costs as crucial measures.

Friedrich Merz, Germany's chancellor-in-waiting, has issued a stern warning about potential further declines in international stock and bond markets, following the implementation of U.S. President Donald Trump's extensive tariff plan. Merz underscored the precarious state of global markets in a statement to Reuters on Monday.

Merz expressed the urgent necessity for Germany to swiftly reclaim its international competitiveness. 'The situation on equity and bond markets is dramatic and poses a risk of further deterioration,' he stated in an emailed statement.

He remarked that addressing this issue is essential in coalition negotiations between his conservative bloc and the Social Democrats. Merz reiterated his party's demand for tax reductions, streamlined regulations, and lower energy prices, asserting these as pivotal to Germany's economic strategy.

(With inputs from agencies.)