And what of the German economy, driven like no other industry by its car giants Mercedes, BMW and Volkswagen? Almost a year on from the election that brought Friedrich Merz to power, the chancellor’s economic report card remains mixed-to-negative. In speeches there, in Davos and Berlin, Merz has promised to pivot the German economy away from the US – without any detail, map or timeline. “High energy costs, rising social security contributions, lengthy planning and approval procedures, and excessive bureaucracy continue to weigh on the German economy,” the report concluded. Despite all its difficulties, the KPMG report predicts the German economy will pick up “cautiously” in 2026, noting growth forecasts of up to 1.5 per cent.

Source: The Irish Times February 03, 2026 16:02 UTC