Germany’s economy is facing what experts describe as its deepest crisis since World War II.
On December 23, 2025, Peter Adrian, president of the German Chamber of Commerce and Industry (DIHK), told the German Press Agency that without structural reforms, the country has little chance of returning to strong and sustainable growth. “If we continue on this path, we will fall behind internationally,” he warned.
Adrian added that the government is losing its financial leeway to design a rational budget and urged decisive measures to stimulate growth.
Peter Leibeniger, head of the Federation of German Industries, recently described Germany’s business environment as being in “free fall.”
According to Adrian, the industrial sector lost 170,000 jobs in just one year, while investments in machinery fell back to 2015 levels, effectively erasing a decade of progress.
He pointed to rising energy and labor costs, as well as international trade disputes such as increased U.S. tariffs, as major burdens on German companies, particularly in the automotive, machinery, and basic materials industries.
Sources - Agencies
