Recovery or ruin: Can Germany escape the crisis?  | To the Point

Germany was once Europe's economic powerhouse. Today, many see a country struggling with slow growth, declining competitiveness, political uncertainty, and public frustration. Whether it's the economy, government performance, or national confidence, Germany appears stuck in a period of stagnation.

Now, the German government is betting on a major turnaround.

Just before its "summer recess," the coalition pushed through its most ambitious reform agenda yet: pension reform, tax relief, deregulation, labor market changes, and healthcare reforms. Shortly afterward, lawmakers approved a new federal budget for 2027 — financed in part by more than €200 billion in fresh debt.

Supporters argue these measures could reignite economic growth and restore confidence. Critics warn that the government is taking a massive gamble with Germany's future.

At the same time, Chancellor Friedrich Merz faces historically low approval ratings, while the right-wing populist AfD continues to gain momentum in opinion polls, increasing pressure on the governing coalition.

Can Germany reverse its decline  — or is Europe’s largest economy heading toward a deeper crisis?

Chapters:

#germany #economy #europe #germaneconomy #economiccrisis #politics #afd #europeanunion #geopolitics #tothepoint

For more news go to

Follow DW on social media:

Für Videos in deutscher Sprache besuchen Sie