Europe is grappling with stubbornly slow economic growth and a surge of unchecked illegal migration. Germany’s Chancellor Friedrich Merz warns that current welfare systems may not be financially sustainable in the realm of today’s economic realities, signaling a critical turning point for the continent.

Germany’s economy contracted more than expected last quarter, according to official data released on Friday. With US tariffs battering exports, Chancellor Friedrich Merz faces mounting pressure to steer Europe’s top economy back to growth.