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Merz warns the unions that Germany must get its act together as jeers ring throughout

In a speech on Tuesday to trade unionists, Merz warned that Germany had better "pull itself together" or else risk being left behind by a world in rapid change. The remarks drew jeers, whistles and boos.

After one year in office, Merz’s popularity has plummeted and his government is embroiled with disputes over how to reform Europe’s largest economy and revive growth.

The sceptical response among workers representing?public, industrial and service sectors is indicative of a larger battle in German politics about the 'pace of change' at a moment when the far-right Alternative for Germany (AfD) is gaining votes from the established parties.

Merz, his Vice-Chancellor Lars Klingbeil, and the conservatives of Merz met later on Tuesday in order to resolve differences.

Germany's economy returned to growth after two years of recession at the end last year. However, the fragile recovery could be snuffed by an energy shock caused by the war against Iran and the new U.S. Tariffs that target carmakers who are already facing competition from China.

"The challenges are also so great because we created problems for ourselves far too long. Problems that we now need to solve." Merz said to the German Trade Union Confederation that we 'have failed to modernise Germany.

"Germany must therefore get its act together. Germany must address the structural issues that we have put off for a long time, and which have grown larger. "You know?it. We all know it."

Merz claimed that bureaucracy and high costs were putting the future prosperity of generations and jobs at risk.

His argument for reforming "health care and pensions", the latter being a simple question of "demographics" and mathematics, was met with occasional heckling, laughter and whistles. Some in the audience also held thumbs down signs. (Writing and editing by Kevin Liffey; Matthias Williams)

(source: Reuters)