Analysis-Merz's economic promises suffer reality check


FILE PHOTO: German Chancellor and leader of the Christian Democratic Union (CDU) Friedrich Merz attends a statement after coalition committee talks in Berlin, Germany. September 3, 2025. REUTERS/Fabrizio Bensch/File Photo

BERLIN (Reuters) -Propelled by a 500-billion-euro spending surge and with a clutch of reforms in hand, German Chancellor Friedrich Merz took office in May promising to deliver on a pledge that his predecessors failed to keep: reviving growth in Europe's largest economy.

But while it was clear that the spending would take time to benefit the economy, there is a growing sense among economists, investors and business groups that the promised reforms are slower and less far-reaching than initially expected.

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