The first 100 days of the federal government under Friedrich Merz were an opportunity to reposition Germany as a global innovation hub. But instead of bold reforms, the black-red coalition is delivering a policy of missed opportunities. Particularly blatant is the failure to introduce a points system modeled on the Canadian system to attract international specialists. This strategic failure weakens Germany’s innovative capacity in the long term, while fundamental errors in Merz’s policies are driving the country into stagnation. This editorial highlights why the lack of immigration reform is an innovation killer and where the fundamental weaknesses of the government lie.
A Points System as a Missed Game Changer
Germany is suffering from an acute shortage of skilled workers, which is strangling the economy’s innovative capacity. According to the Institute of the German Economy, over 120,000 skilled workers are missing in the IT sector alone, and the shortage is becoming increasingly noticeable in key areas such as AI, biotechnology, and renewable energies. Countries like Canada have established a model with their Express Entry points system that specifically attracts highly qualified skilled workers. Points are awarded for qualifications, professional experience, language skills, and adaptability, enabling quick and transparent selection. Since 2015, Canada has integrated tens of thousands of talents annually through this system, revitalizing the economy.
Merz’s government, on the other hand, relies on a restrictive migration policy that prioritizes closure over openness. The tightening of border controls and the termination ofaufnahme programs, for example for Afghan skilled workers, send a fatal signal: Germany is not an attractive location for international talent. Instead of introducing a points system that specifically attracts engineers, programmers, or climate researchers, the government is getting lost in populist measures such as suspending family reunification. This policy ignores the fact that innovation thrives on global knowledge transfer. While countries like Australia and Singapore attract talent from all over the world with similar systems, Germany under Merz remains trapped in national narrow-mindedness.
Economic Policy Without an Innovation Impulse
Merz’s economic policy measures reinforce this mistake. The abolition of the Supply Chain Act and the planned reduction of the electricity tax provide short-term relief for companies, but neither promote disruptive technologies nor the settlement of skilled workers. The “accelerated depreciation” for investments is a bureaucratic compromise that supports existing structures but provides no incentives for future technologies such as AI or hydrogen. The announcement of a Digital Ministry sounds promising, but without international expertise, the digitalization of industry will remain a dream. Without a points system that attracts IT specialists or data scientists, Germany will remain digitally backward.
The government also ignores the demographic reality: with an aging population, there is a shortage of minds to drive innovation. Canada shows how it’s done: over 400,000 migrants are integrated there annually, many of them highly qualified, while Germany struggles with bureaucratic hurdles and a restrictive visa system. Merz’s focus on border protection instead of targeted immigration is a strategic misstep that undermines the location’s competitiveness.
Foreign policy isolation instead of global attraction
Merz’s foreign policy approach exacerbates the innovation crisis. His trips to Paris and Warsaw were symbolic, but concrete initiatives for European cooperation in research and innovation are lacking. The reduction in development aid signals withdrawal instead of global partnership – a fatal sign in a time when climate protection and health research require international cooperation. A points system could position Germany as an attractive partner that attracts talent from emerging countries, but Merz’s policy relies on national isolation. This not only contradicts the spirit of the EU but also isolates Germany in a globalized knowledge society.
Flawed thinking: Populism instead of strategy
The core mistake of the Merz government lies in its prioritization: instead of focusing on long-term investments in education, research, and targeted immigration, short-term populism dominates. The tightening of asylum policy may secure voter support, but it ignores the economic necessity of skilled workers. The “new basic security” with stricter sanctions for the unemployed is another example of a policy that punishes rather than promotes. Innovation arises not from deterrence, but from incentives – a points system would be such an incentive, but Merz is leaving this opportunity unused.
The legal hurdles for a points-based system are manageable: Canada has shown that such a model is compatible with national priorities and EU requirements. However, Merz's government lacks the political will to implement such a system. Instead, the fear of populist criticism dominates, stifling any reform in its infancy. The result is a policy that treats symptoms but ignores the causes: the shortage of skilled workers and Germany's lack of attractiveness for global talent.
Conclusion: A country at a crossroads
The first 100 days under Friedrich Merz show a government endangering Germany's innovative strength through neglect. The failure to introduce a points-based system modeled on Canada's is a central mistake that blocks the recruitment of international specialists. Without these talents, Germany will fall behind in key areas such as digitalization, climate protection, and AI. Merz's policy of isolation and short-term relief is a step backward in a time that calls for global openness and strategic foresight. If the government does not change course, it risks permanently weakening Germany as a center for innovation. A points-based system would be a first step in the right direction – but time is running out.
