The German Federation of Industry (BDI) has published a report describing the national economy in free fall. Presenting the report, BDI President Peter Leibinger issued the following statement, published on the BDI website and covered by all German media:
“The economy is experiencing its most severe crisis since the founding of the Federal Republic, yet the Federal government is not responding with sufficient resolve. German industry is facing a dramatic low point at the end of 2025.
“We expect production to slump by 2%this year, marking the fourth consecutive year of decline in industrial production. This is not a cyclical dip, but a structural decline.
“Industrial production is shrinking for the ninth consecutive quarter, and we are a long way from the peak of 2018. German industry is continuously losing substance. In the third quarter, production fell again by 0.9% compared to the previous quarter and by 1.2% year-on-year.”
Although correctly calling for investments, Leibinger falls short of urging for the needed crash program. “Germany now needs an economic policy turnaround with clear priorities for competitiveness and growth. Every month without decisive structural reforms costs more jobs and prosperity and massively restricts the state’s future scope for action.
“The Federal government must give priority to investment over consumer spending. The special fund must be used transparently for additional investments.
“Reducing bureaucracy [with the term bureaucracy, German producers mostly refer to Green Deal constraints—ed.] remains an untapped driver of growth. An economic stimulus program at no cost would provide noticeable relief. The relief cabinet was a good start. But now companies need far-reaching relief that they can really feel in their everyday lives. We have submitted over 250 concrete proposals.”
