Politics · Germany · 12 hrs ago
Merz backs free markets and calls for generosity in society
German Chancellor Friedrich Merz spoke in Berlin at an event held by the Friedrich August von Hayek Foundation.
Hayek, an influential liberal economist, argued that knowledge is spread across society, so governments cannot plan an economy as well as people and businesses making decisions independently.
Merz said open markets and competition help find better solutions, while the state should set rules, protect property and provide infrastructure.
He also called for greater generosity between citizens, saying doubts about fairness and future opportunities were growing, especially among young people.
Merz defended his government’s reforms as a response to those concerns, while acknowledging that no calculation can deliver absolute fairness.
He cast “Freedom instead of Socialism” as a central question, referring to a 1976 CDU campaign slogan and possible left-led coalition talks in Berlin.
His government is changing support for renewable energy so its expansion responds more to market needs, rather than ending the energy transition.
German Chancellor Friedrich Merz backed free markets and open competition in a speech to the Friedrich August von Hayek Foundation.
He argued that governments cannot gather all the knowledge needed to make economic decisions centrally.
Merz said the state should set rules, protect property and enable competition, while providing social support when needed.
He also called for “a certain generosity” among citizens and said doubts about fairness and future opportunities needed to be addressed.
The speech took place as parties in Berlin were negotiating a possible coalition of the Left, Greens and Social Democrats.
- Who
- German Chancellor Friedrich Merz.
- What
- He defended free markets and competition, and called for generosity and fairness in society.
- When
- Thursday, November 5, 2026.
- Where
- At a Friedrich August von Hayek Foundation event in Berlin; NZZ said it was held at the Hotel Adlon Kempinski.
- Why
- He argued that decentralized markets can produce better solutions than central state planning, and that reforms are needed to address doubts about fairness and future opportunities.
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- Speaker
- Friedrich Merz
- Event
- Friedrich August von Hayek Foundation gathering
- Date
- November 5, 2026
- Berlin coalition talks
- The Left, Greens and Social Democrats were negotiating over forming a coalition
- Hayek Foundation prize
- This year’s prize went to Wikipedia founder Jimmy Wales
3 sources
What people are saying
The state should not make economic decisions itself – because it cannot.
No state can centrally gather the necessary knowledge and determine the right solutions in advance.
A certain generosity in the interaction of citizens who fundamentally affirm and value their political and economic order is necessary.
Freedom instead of socialism is still the central question.