Germany’s industrial leaders—increasingly under pressure by the political elite’s maladministration—are, yet again, sounding the alarm as the country enters what many now call its worst economic crisis since the founding of the Federal Republic.
Industry representatives, according to a report by the German newspaper Die Welt, warn that the damage is not just temporary but structural—and largely self-inflicted.
Peter Leibinger, head of the Federation of German Industries, says Germany’s industrial engine is in “free fall.” He argues that the ruling globalists in Berlin still—despite repeated and continual warning sigals—refuse to acknowledge how badly its own policies have undermined the economy.
Production is set to contract for a fourth consecutive year, marking a collapse unprecedented in modern German history. Economists warn that the country is losing its industrial core, not experiencing a normal downturn.
Much of the blame, critics say, lies with the out-of-touch, head-in-the-clouds political class that cut the country off from cheap Russian energy without securing viable alternatives.
Germany’s manufacturing base—long dependent on stable, affordable energy sources—was left exposed to soaring costs and chronic shortages.
To add insult to injury, the same globalist leaders have accelerated the shutdown of the nation’s remaining nuclear power plants, eliminating the one and only reliable, domestic energy source capable of stabilizing industry. Business groups describe this as a catastrophic act of ideology disguised as environmental policy.
Leibinger stresses that the consequences are now impossible to ignore. German industry, he says, is “losing substance every year.”
Chemical companies report plant utilization at levels not seen in decades. Mechanical engineering and steel production are also under heavy pressure, facing rising costs and aggressive foreign competition.
Even sectors that once defined German strength, such as automotive manufacturing, face declining employment and shrinking margins. Executives warn that the country is slowly pricing itself out of the global market.
Export demand has weakened, especially from Asia, leaving firms without the foreign orders they once relied on. Combined with high domestic costs, the model that built Germany’s prosperity is collapsing.
Entrepreneurs, for their part, blame an avalanche of overregulation that makes investment increasingly unattractive. Many say innovation is being strangled by bureaucracy and political micromanagement.
The newish, centerist, allegedly-pro business government, however, insists that new reforms will take time to work. But industrial leaders argue that Germany does not have time left to waste.
Berlin claims modest growth may return due to higher defense and infrastructure spending, but manufacturers see this as wishful thinking. They warn that the country is shifting money around rather than fixing the root problems.
Leibinger is now calling for a complete overhaul of Germany’s economic policy, with priority placed on restoring competitiveness and rebuilding industrial capacity. He’s calling for investment to be elevated above ideological pet projects and welfare for foreign nationals.
A growing chorus of critics says the government’s fixation on climate mandates, soaring migration costs, and pricey globalist ventures like the war in Ukraine has siphoned away the very resources that should have been protecting Germany’s industrial backbone. Many believe these choices are driving Germany toward long-term, terminal decline.
Germany once stood as Europe’s industrial backbone, powered by reliable energy and disciplined economic management. Now, after years of ideological decision-making, the nation faces a crisis entirely of its own globalist classes making.
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