German Chancellor Merz pushes for EU economic reforms and rejects shared debt

German Chancellor Friedrich Merz is advocating for major economic reforms within the European Union. He is calling for action to boost the bloc's competitiveness by simplifying regulations and creating a deeper EU capital market, while also rejecting proposals for new joint EU debt.

During a trip to China, Merz praised the country's efficiency and urged the EU to cut red tape. He also discussed trade, with EU Commission President Ursula von der Leyen announcing the EU will provisionally apply a major free trade deal with the Mercosur bloc of South American nations.