German Chancellor Friedrich Merz’s multibillion-euro debt-funded investment push will not be enough to fix the country’s flagging economy over the medium term, the IMF said on Wednesday.
After four years with no growth, Europe’s largest economy needed a more fundamental overhaul than Merz had so far announced, the IMF said.
“Without further bold reforms both domestically and at the EU level, Germany still faces a persistently challenging medium-term growth outlook,” it warned following a visit by the fund’s staff to the country.
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