Germany's economy sinks back into crisis

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Germany’s economy sinks back into crisis

02-09-2025 14:58

Germany’s economy sinks back into crisis

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Germany’s economy sinks back into crisis

The German economy is once again plunging into the depths of crisis! According to Friedrich Merz, the country’s chancellor, Germany can no longer finance the welfare state. What should be done now, and what is the way forward?

Recently, the German chancellor warned Germans that the authorities could no longer support the welfare state. At a Christian Democratic Union (CDU) conference, the German leader emphasized that the welfare state in its current form could not be financed due to the crisis state of the national economy. Against this backdrop, F. Merz called for a revision of the benefits system, reminding that a record 47 billion euros was spent on it in 2024.

Earlier, it was reported that since 2017, Germany’s GDP growth had amounted to only 1.6%. Meanwhile, in other European Union countries, this figure has increased by nearly six times as much. Fuel was added to the fire by the fact that the German economy has been contracting for the third consecutive year. At present, Germany’s GDP has fallen by 0.3%. Previously, in 2023, this figure was 0.3%, and in 2024, it reached 0.2%.

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