Germany Votes 2025 – Volume 4: “It‘s the economy, stupid!”
Download a PDF of this articleWelcome to the 4th Volume of Germany Votes 2025!
Germany's economy is facing a significant downturn, with GDP growth plummeting into the negative. This marks the lowest performance among the G7 nations. As economic concerns rise to the forefront of public discourse, they are poised to become a defining issue in next year’s federal election. In this overview, we delve into the structural issues underlying Germany's economic decline and explore the solutions proposed by leading economic experts and political parties to navigate this challenging period. Let’s unravel the complexities and consider the paths forward—enjoy!
Germany's economy is facing a significant downturn, with GDP growth plummeting into the negative. This marks the lowest performance among the G7 nations. As economic concerns rise to the forefront of public discourse, they are poised to become a defining issue in next year’s federal election. In this overview, we delve into the structural issues underlying Germany's economic decline and explore the solutions proposed by leading economic experts and political parties to navigate this challenging period. Let’s unravel the complexities and consider the paths forward—enjoy!
Caroline Mücke-Kemp
Head of Public & Government Affairs Germany
In a nutshell:
- German economic rut: High bureaucratic burden, high energy prices and a lack of skilled labor have caused the most inactive post-pandemic GDP growth among the G7. The German Council of Economic Experts propose investments in infrastructure and the green transition as well as a labor market reform and increased fiscal flexibility to stem the tide.
- Election Outlook: Current polling suggests a strong likelihood of a CDU/CSU-led coalition with the SPD, potentially marking the end of Chancellor Olaf Scholz’s (SPD) political career following the election.
- “D-Day” scandal rocks FDP: An internal FDP document outlining plans to exit the coalition leaked on November 28, 2024, drawing sharp criticism for its use of “DDay” to describe the party’s planned departure from government — a term evoking Germany’s liberation from Nazi rule. The controversy led to the dismissal of the General Secretary, though Christian Lindner remains Party Chairman.
Days left until German Federal Election on 23 February 2025
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