Merz Vows to Defend Germany’s Last G7 AAA Rating
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MENAFNFriedrich Merz made the pledge after accepting the yearly report from the German Council of Economic Experts.
“Germany is the only country among the G7 that still has a triple-A rating. I want that to remain the case,” Merz said. He added that his Cabinet colleagues fully share his view that every effort must be made to hold on to the rating.
The G7 comprises seven leading advanced economies: the United States, United Kingdom, France, Germany, Italy, Canada and Japan.
Merz welcomed the council’s decision to raise its growth forecast to 1.3%. He said the economy is gradually recovering and the advisers have lifted their projections to roughly that level.
“Given the many crises in Germany, it was not necessarily to be expected that we would manage to pull this off,” he said. The recovery is expected to carry into next year, offering encouraging signs for companies and households across the country.
Turning to the report’s emphasis on fiscal policy, Merz said the government backs the call for disciplined budgeting and stable public finances. He noted that Berlin is pursuing such a course while also having to fund a series of major challenges.
The conservative chancellor said the government will press ahead with reductions in subsidies and financial aid, along with savings on staffing. “That also includes the structural reforms in the social security systems,” he stressed. “We particularly want to switch pension insurance to a new concept. We also want to reach a decision on this within the Cabinet this year.”
Merz called competitiveness and growth the top priorities of his government. He pointed to the special fund for infrastructure and climate neutrality, increased defense spending on the German armed forces, and the modernization of infrastructure. The more upbeat forecast from the German Council of Economic Experts, he said, reinforces the government’s direction.
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