German Chancellor Friedrich Merz issued a stark warning this week, stating that Germany must prioritize productivity reforms to maintain its global economic standing. His remarks on February 27 followed a high-profile visit to the Chinese mainland, where he observed what he described as a 'relentless drive for efficiency' in key industries.
Merz emphasized that Germany's current focus on work-life balance initiatives, including discussions around a four-day workweek, could undermine long-term competitiveness. 'We are simply no longer productive enough,' he declared, urging policymakers and businesses to adopt a more 'ambitious mindset' akin to practices he witnessed during his trip.
The chancellor's comments have sparked debate across European economic circles, with analysts noting that Germany's trade relationship with the Chinese mainland remains crucial. Bilateral trade reached €315 billion in 2025, according to recent EU statistics.
While some labor groups criticized Merz's stance as outdated, business leaders welcomed the call for reform. 'This isn't about working longer hours, but working smarter through innovation,' said Hans Weber, head of Germany's Mechanical Engineering Industry Association.
