Merz: Germany to be 'fundamentally different' by 2035

German Chancellor Friedrich Merz said on Tuesday he believed Europe's largest economy was capable of reform and could undergo a fundamental transformation by 2035.

"Germany has the strength for reforms, Germany has the strength for a new beginning," Merz said at an economic council event in Berlin.

Merz said he expected the country to look "fundamentally different" by 2035, citing fully digitalized public administration and approval processes, a state no longer seen as an obstacle and a shift from mistrust to confidence. Energy would again become affordable and reliable, he added.

"In short, I believe that Germany in 2035 will be a country that believes in itself again, a country that is free, that remains secure and that preserves its prosperity for future generations," he said, adding that this was achievable rather than utopian.

Merz acknowledged that sentiment in Germany was currently strained, saying concerns reflected "very real problems" rather than passing moods. He warned that jobs were being lost daily and companies were going bankrupt.

However, he cautioned against excessive pessimism, saying constant "doom and gloom" could ultimately weaken even a strong society and that there was no reason for such a bleak outlook despite justified criticism.