Submitted by Thomas Kolbe

The collapse of the German economy is now becoming visible even in the labor market. Yet instead of pushing for a political turnaround with deregulation measures and genuine relief, the federal government limits itself to empty rhetoric and media appearances. In Berlin, PR is mistaken for economic policy—propagandistic fragments are presented as proof of achievement.

It was a week of media presence for the Chancellor. Friedrich Merz staged visibility: speeches, press conferences, appearances on German Unity Day, and the first cabinet retreat at Villa Borsig. He even tackled the new swarms of drones—with emphatic rhetoric, as if these threats, according to panicked press reports, were undermining citizens’ trust in security and airspace control—and immediately called for border measures.

Had we not learned over the past decade that border control was impossible? Wasn’t this the mantra, particularly for the CDU, during the Merkel-era invasion crisis?

But never mind. It’s not just the borders crumbling due to political inaction and a lack of will to solve problems.

Rhetorically and Physically Present

Merz was omnipresent, rhetorically and physically. At the Unity Day ceremony in Saarbrücken, the Chancellor even attempted emotional bridges with the audience.

He invoked social cohesion, called for optimism and a “new beginning,” spoke of courage, initiative, and the challenges posed by autocracies, digitalization, and geopolitical change.

Germany, Merz said, stands in Autumn 2025 at a “decisive moment” in its history, a phase that may determine the nation’s future. Despite economic and security tensions, one must “look ahead with confidence and vigor” and strive for a “new unity” in the country. Citizens should not be paralyzed by fear but, like East Germans 35 years ago, dare their own new beginning.

What was meant as an appeal to the spirit of 1989 sounded more like empty morale-boosting slogans—subtle blame-shifting that puts the burden of the crisis on ordinary citizens.

Economically Bleak

The economic outlook is so grim that even Berlin’s normally insulated news bubble cannot entirely shield the Chancellor’s office from daily shocks in the German economy.

Mild Pressure, No Consequences

Fragments of criticism from Germany’s bureaucratic and union circles appear to have reached the Chancellor’s office. Industrial CEOs complain daily about ruinous energy costs. The grotesque regulations that strangle the country are conveniently ignored—they prevent the few innovative SMEs from becoming serious competition.

Yet when companies like Bosch cut 22,000 jobs, Mercedes scraps an electric vehicle project to return to combustion engines, and entire supply chains of basic industry vanish, political action is required.

But no one dares, even verbally, to strike at the root of this civilization-destroying policy—the green agenda shared by nearly all in Berlin, except the AfD. It embodies faith in centralized power in Brussels, paving the way for the “United States of Europe,” whatever its architects may envision.

Merz and Finance Minister Lars Klingbeil—the true debt kings of our era—seriously believe that pumping a few hundred billion euros into failing projects will get the country moving again. An intellectual bankruptcy, and more: proof of structural delusion—ideological and intellectual.

Laughable “Reforms”

Merz’s response to deindustrialization and social crisis is surprisingly simple: a few media appearances, the “Made for Germany” coffee sessions, or announcing a “reform autumn” should suffice to prove the economy is turning around. It’s always the public’s bad mood, according to Merz—the eternal grumbler who simply doesn’t appreciate the hard work of policymakers.

In material terms, this government achieves nothing. In the distant future, companies might receive modest corporate tax relief—a few billion euros, laughable compared to a federal government budget of over €520 billion next year. A two-year temporary depreciation? A trivial gesture.

It is particularly cynical when the government celebrates simplified car registration or a new bureaucratic portal as groundbreaking deregulation while the administrative apparatus continues to consume billions unchecked.

For context: the ifo Institute estimates the direct and indirect costs of Germany’s bureaucracy at around €146 billion annually—over three percent of GDP.

In a country with a state share beyond 50%, this is nothing less than a confession of impotence: a document of inaction, overextension, or deliberate planning by the government—results unchanged.

Old Political Tales

Merz and Klingbeil repeat old political fables: bureaucracy will be reduced by €16 billion, eight percent of personnel cut. Believers may rejoice. Meanwhile, debates have already started about building new bureaucracies to manage the massive subsidy flows favoring green and military cronies in coming years.

Talk of deregulation is just a slogan, a hollow phrase, compulsively repeated by speechwriters. Reality: thousands of new positions at local and state levels, sold as “employment success.” Welcome to today’s political parallel universe.

It is telling that during this orchestrated week, neither the planned inheritance tax increase nor the end of spousal tax splitting proposed by Klingbeil were mentioned. All of this is media theater—distractions, smoke bombs—meant to suggest the problem has been recognized and addressed. In reality, it’s political simulation perfected to emptiness.

Actual Situation

The reality for the economy and citizens is very different. Merz allows the ever-increasing, grotesque CO₂ tax to pass without resistance—a bow to Brussels. Citizens feel the impact at the checkout as prices surge across daily essentials.

Meanwhile, municipalities respond to the green regulatory-induced economic crisis with tax hikes: the minimum business tax rate factor nationwide rises from 200 to 280 points—a costly measure that will eliminate thousands of jobs.

Since 2018, mismanaged policy has eliminated roughly 1.3 million private-sector jobs while the state created over 420,000 new public-sector positions—spinning the debt spiral ever faster.

A genuine reform would have broken this deadly cycle. It would have had the courage to finally address the migration crisis—rather than delaying debates over the migration-related citizens’ allowance through semantic smoke screens and political procrastination.

Nothing but Hot Air

Given the government’s disastrous record, one wonders: can’t they, won’t they, or aren’t they allowed? Whatever the reason for this political paralysis, Merz is the archetype of someone who simulates work with remarkable consistency—omnipresent, loud, center-stage—yet delivers nothing but hot air.

We know this game: the classic stalling tactic, backed by Berlin-Brussels consensus on the ideological agenda: social restructuring, centralized energy control, a monitored financial system, and the installation of a censored public sphere.

The media plays, channeling the 1990s, embodied by a Chancellor whose social media team reproduces tone, posture, and content from a past era, are proof. The Chancellor’s office believes it can regain air superiority over narratives and public opinion. Repeated messages, intensified public broadcaster propaganda, European censorship laws—all aimed to silence dissent and relegate serious opposition to “far-right conspiracy theories.”

In summary, this orchestrated week demonstrates once more how the political-media complex buys time by scattering sand into critics’ gears. Time to prepare the actual “reforms” underway elsewhere: a digital euro as a capital control, a UK-style digital ID, and accelerated wartime economic mobilization against an imminent Russian threat.

If this is the promised “autumn of reforms,” buckle up.

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About the author: Thomas Kolbe has worked as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

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