Merz Admits Germany is Losing Industrial Jobs on a Large Scale

German Chancellor Friedrich Merz has warned that the country risks losing significant parts of its prosperity unless it arrests a large-scale decline in industrial employment.

“At the moment, we are losing industrial jobs on a large scale, and we must stop this trend,” Merz said. “Germany must remain an industrial country.”

He added: “If we do not remain an industrial country, then large parts of our prosperity are at risk.”

Industrial Model Under Pressure

The comments place Germany’s industrial base at the center of Merz’s assessment of the country’s economic position.

The chancellor argued that retaining industrial capacity was essential to protecting living standards, even as Germany expands into energy-intensive digital infrastructure.

Merz said the country was building data centers at an unprecedented pace, acknowledging that the expansion would substantially increase electricity demand and place additional pressure on some locations.

He nevertheless urged authorities and industry to use every available opportunity to develop the infrastructure.

Government Record Under Scrutiny

Merz also conceded that his government had failed to meet expectations, pointing to weak polling and potentially difficult election results.

He said what the government had achieved “has not been enough,” while arguing that policy ambitions were constrained by the coalition government with the SPD.

According to Merz, some measures sought by his CDU could not be implemented under the current governing arrangement. He said a purely CDU program would require an absolute parliamentary majority.

Research, Defense and Technology

The chancellor also presented Germany’s research environment as a potential source of competitive strength.

Merz said people from several countries, including the U.S., increasingly viewed Germany as an attractive destination for science and research.

He pointed to open universities and what he described as freedom in science, research and development.

Merz also welcomed many universities abandoning so-called civil clauses, saying academic institutions were now working with the Bundeswehr on technology research and development.

Security Risks

Merz linked Germany’s economic and technological challenges to a broader security argument.

He described an incident at Leipzig Airport involving a drone carrying explosives, saying Germany had come close to a serious disaster after the device failed to detonate during the final stage of its approach.

Merz rejected arguments that ending support for Ukraine would reduce such threats, calling that position naive.

National Identity

The chancellor also addressed Germany’s political identity, saying the country had moved beyond nationalism and that he would not permit a return of ethnic nationalism.

Despite his warnings over industry and security, Merz portrayed the Federal Republic’s postwar record as one of sustained prosperity, safety and democratic stability.