Merz has made boosting Europe's biggest economy a priority but critics charge that, after four months in power, his government is moving too slowly and not living up to its promises of reform. During a meeting Monday with leaders of Germany's four top business associations, Merz faced a dressing-down for failing to take strong action in areas ranging from welfare reform to tackling onerous red tape, tabloid Bild reported.
The latest GDP figures, released on Friday, highlight the scale of the challenge for Reeves at her autumn budget. Growth flatlined in July, slowing from 0.4% in June, as the economy struggled for momentum over the summer. Some of the weakness can be explained away. Most economists had anticipated a slowdown after Britain recorded the strongest growth in the G7 in the first half of the year.