thomas obst is senior economist at the german economic institute.focus of the new chancellor. we have a clear winner, the conservatives. they have to be quick now to form a coalition. they could likely form a coalition with the social democrats, as it turns out, and what i would expect is that his main priority would be how to deal with competitiveness. you have mentioned it — we have seen a recession over the last two years and we have seen stagnation for over five still able to take on debt, companies are optimistic again. sentiment was really on an all—time low — with our economy over the next five to ten years. i think this is the big issue. how to bring business conditions into a setting that companies are optimistic again. we have seen, as you said, when the coalition failed, and we had big arguments among the partners that business sentiment was really on an all—time low — as low as during the pandemic — and i think if he manages to restore business confidence but also to stabilise and improve expectations of households, we would see growth a

the economy shrunk in both 2023 and 2024 what is for thomas obst is senior economist at the german economic. is in berlin and tell me more the primary moreaboutthe primaryeconomic of the new chancellor. the last two years and we have seen stagnation for over five and we need to restore competitiveness. to high energy costs. with an industrial plan, increased borrowing, and that's what led to the collapse of their three—party coalition. how do you think friedrich merz will navigate what is back on track? i think his main priority is to restore growth. we need economic growth and this would help us with our we can take on, 0.35% of gdp, but if gdp is growing you also how to bring business conditions into a setting that we have seen, as you said, when the coalition failed, sentiment was really on an all—time low — and improve expectations of households, we would see what are your thoughts on what he had to say not long after the results were coming through about the us administration and the german relationship with america? i think this is the big issue. on the german economy — germany is ver