Germany’s prolonged recession, as the world’s fourth-largest economy, has alarmed both employers and trade unions, prompting them to present proposals to address the situation.
Rainer Dulger, president of the Confederation of German Employers’ Associations, urged the government on Saturday (December 27, 2025) to implement fundamental reforms. “Germany needs a big step, otherwise we face a permanent crisis. We are experiencing the longest crisis since the founding of the Federal Republic,” he told the German Press Agency (dpa).
After two consecutive years of recession, only minimal GDP growth is expected for 2025, with economists predicting no significant recovery in the following year.
Dulger also highlighted global challenges, including Russia’s ongoing war against Ukraine, authoritarian regimes, an increasingly aggressive China, and U.S. President Donald Trump’s “America First” trade policy.
Sources - Agencies
