German Finance Minister Calls for Overhaul of Economic Structure

German Finance Minister Jörg Kukies stressed the urgent need to address structural weaknesses in the nation’s economy during a press briefing on January 23. Kukies pointed to challenges such as a slowing industrial base, aging infrastructure, and an over-reliance on exports as key issues that could undermine Germany’s long-term economic competitiveness.

The minister underscored the importance of fostering innovation, particularly in green technology and digitalization, to drive future growth. Kukies also called for stronger public-private partnerships to modernize infrastructure and attract foreign investment. “Germany must act decisively to future-proof its economy in an increasingly competitive global landscape,” he said.

Economists have warned that Germany’s manufacturing sector, long regarded as the backbone of its economy, is facing pressure from shifting global trade dynamics and the energy transition. Additionally, demographic challenges, including an aging workforce, pose risks to economic stability.

To counter these trends, the government plans to introduce incentives for small and medium-sized enterprises to adopt sustainable practices and boost productivity. Kukies emphasized that tackling structural weaknesses will require bold reforms and sustained collaboration between industry stakeholders and policymakers to ensure Germany remains an economic powerhouse.