Merz vows security, backs key reforms in first New Year's speech

German Chancellor Friedrich Merz has called for confidence despite global crises and voiced support for implementing key economic reforms.

"We have it in our own hands to overcome each of these challenges through our own efforts," the chancellor said in his first New Year's address, according to a previously released copy of his speech.

"We are not victims of external circumstances. We are not pawns of great powers."

Referring to the war in Ukraine, threats from Russia and strained relations with the United States, Merz said he was aware that many people were worried about peace in an uncertain world.

"I'm telling you: We are taking care of our security. We live in a safe country," he said, adding that deterrence capabilities must be strengthened to maintain that safety.

Merz also highlighted pension reforms already launched by his governing coalition. The controversial pension reform package was passed by lawmakers in early December following months of political wrangling.

He made an appeal for public backing for further planned changes. He said that many people felt the steps taken so far had not gone far enough and that their effects were not yet apparent.

Merz said their concerns were valid but expressed confidence that "Germany will reap the rewards of these reforms, even if it takes time."

The chancellor said: "So the year 2026 can be a moment of new beginnings. That is the prospect I want to open up for you and all of us."

It could be a year in which Germany and Europe return to decades of peace, freedom and prosperity with renewed energy.

"To achieve this, we must trust ourselves, our courage and our drive," said Merz, adding: "Let's not listen to the fear-mongers and the doomsayers."