German economists' call for painful reforms to revive growth is a wake-up call for Chancellor Friedrich Merz and the country. The German Council of Economic Experts' intervention highlights the urgency of addressing soaring social spending and the risks of prolonged stagnation. While Merz grapples with record-low approval ratings, the council's warning underscores the need for bold action. The population's rapid aging and the economic fallout from the U.S.-Israeli war with Iran are exacerbating Germany's economic challenges. The council's growth forecast cut to 0.5 percent and rising inflation to 3.0 percent underscore the gravity of the situation. Economists like Gabriel Felbermayr emphasize the impact of tariffs and the energy crisis, making the worst-case scenario of prolonged stagnation more likely. Merz must heed the council's advice and enact reforms to secure Germany's economic future, despite the political challenges ahead.
