German Chancellor Friedrich Merz delivered a striking moment of honesty Thursday, openly admitting that Germany and the European Union have “wasted incredible potential” by drowning growth in bureaucracy and over-regulation. Yes—an actual European leader saying the quiet part out loud.
Speaking at the World Economic Forum in Davos, Switzerland, Merz, a member of Germany’s center-right Christian Democratic Union, said Europe sabotaged its own growth by limiting freedom, responsibility, and entrepreneurial initiative. In other words, too much government, too many rules, and not enough common sense.
“Both Germany and Europe have wasted incredible potential for growth in recent years by dragging feet on reforms and unnecessarily and excessively curtailing entrepreneurial freedoms and personal responsibility,” Merz said. He added that change is coming—finally.
Merz didn’t stop there. He acknowledged what business leaders and taxpayers have known for years: Europe has turned regulation into an Olympic sport. The EU’s single market, once designed to be the most competitive economic zone in the world, has instead become the global capital of red tape.
“We must reduce bureaucracy substantially in Europe,” Merz said. “Instead, we have become the world champion of over-regulation. That has to end.” Strong words—and a refreshing departure from the usual Davos doublespeak.
He emphasized that security and predictability should matter more than what he called excessive regulation and “misplaced perfection,” a clear shot at the regulatory obsession that has slowed innovation and chased opportunity elsewhere.
Merz also addressed global power dynamics, warning that the old world order is collapsing rapidly. While he described the emerging reality as dangerous and driven by power, he made clear that Europe does not have to accept decline as destiny.
“We [Europe] do not have to accept this new reality as fate,” he said, pushing back against the idea that the continent is powerless in a changing world.
In recent remarks to the German Chamber of Industry, Merz also admitted that Germany’s shutdown of its nuclear power plants was a “serious strategic mistake,” another rare acknowledgment of policy failure in modern European politics. Additionally, in November 2025, he stated he would begin discussions on repatriating Syrians living in Germany—another signal of a shift toward realism over ideology.
The bigger picture here is unmistakable. Even Europe’s leaders are now admitting what President Trump has been saying for years: excessive regulation kills growth, weakens nations, and hands advantage to competitors who aren’t afraid to put productivity first.
The positive takeaway? Reality is catching up with rhetoric. If Europe follows through on Merz’s words, it could rediscover the growth and strength it once had. And that’s a reminder that strong leadership—focused on freedom, accountability, and results—is still the most powerful engine for prosperity anywhere in the world.
