German economy minister calls for reform as Germany halves 2026 growth forecast

German Economy Minister Katherina Reiche emphasized the need for far-reaching structural reforms to restore a growing and competitive economy, as the government downgrades its growth forecast for 2026 from 1.0% to 0.5%.

The government attributes this to the energy crisis triggered by the war in Iran, which has resulted in weaker performance than that of its European neighbors. “Other countries have done their reform homework…" Reiche said during a press conference in Berlin, adding that in some cases these were "painful reforms".