Germany’s political leadership convened for a two-day strategy session aimed at boosting economic growth and addressing long-term challenges like energy costs and industrial competitiveness.

During a two-day cabinet retreat at Neuhardenberg Castle, German Chancellor Friedrich Merz emphasized the importance of leveraging the country’s industrial strength and innovative capacity to overcome economic stagnation. Addressing ministers, Merz highlighted Germany’s robust industrial base and skilled workforce as critical resources for promoting growth and employment in the coming years.

As part of the discussions, Merz called for decisive government action to create an environment conducive to economic expansion. This includes accelerating decision-making processes, eliminating bureaucratic hurdles, and setting clear priorities for reforms. Additionally, the retreat touched on immediate policy responses to address challenges posed by this summer’s heatwaves and drought, with concrete proposals expected later this week.

Chancellor’s Office Chief Nina Warken underscored the need for unified efforts within the coalition, emphasizing improved conditions for businesses, particularly regarding labor costs, energy prices, and regulatory burdens. Union parliamentary leader Thorsten Frei reiterated the urgency of driving economic growth, stating that Germany cannot afford further stagnation and must embrace necessary reforms to ensure global competitiveness. Leaders stressed the importance of collaboration between coalition partners to navigate upcoming legislative priorities and maintain momentum.