German Finance Minister Lars Klingbeil defended the governing coalition’s economic policies and pledged to push ahead with additional reforms by the end of the year to help spur growth.

As Chancellor Friedrich Merz’s government faces mounting pressure to deliver on promises to rekindle growth, Klingbeil told Funke Media Group that the coalition has the strength for real reforms.

“We will make important decisions by the end of the year” including structural reforms in areas such as health care and pensions, Klingbeil said.

Official data published Friday showed Europe’s biggest economy shrank more than expected in the second quarter, underscoring the challenges for Merz.

The 0.3% slump in gross domestic product was far worse than the preliminary reading of -0.1%, largely because of manuf

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