Germany’s industrial collapse accelerates as ideological policies clash with economic reality
09/25/2025 / By Ramon Tomey
Germany’s industrial sector faces a five percent production drop in 2025, with only a weak one percent rebound expected in 2026 if reforms even materialize. Over 200,000 industrial jobs have vanished since 2020, with 68,000 lost in 2024 alone.
Soaring electricity costs (three times higher than the U.S.) have crippled steel and manufacturing, forcing companies to flee. The abandonment of nuclear and fossil fuels in favor of unreliable green policies has accelerated the crisis.
U.S. tariffs (50 percent on metal exports) and China’s subsidized dominance in clean energy and tech have pushed German firms out of key markets. Meanwhile, Berlin clings to failed Green Deal mandates instead of deregulating.
The VDMA warns of a “tipping point” – economic stagnation fuels extremism, yet leaders refuse to slash taxes, bureaucracy or approvals. Instead, they offer subsidized electricity, a temporary fix that ignores the capital and job exodus.
Germany’s post-war industrial miracle built on engineering, chemicals and autos is being dismantled by ideological green dogma. Without urgent reversal, Germany faces full-blown industrial depression, threatening Europe’s stability.
Germany, once the powerhouse of European industry, is now facing an unprecedented economic unraveling. Production forecasts for 2025 have been slashed to a staggering five percent decline, with only a feeble one percent rebound expected in 2026 if promised government reforms materialize at all.
https://www.climate.news/2025-09-25-germany-industrial-collapse-accelerates-policies-clash-reality.html
