Germany’s industrial collapse accelerates as ideological policies clash with economic reality

• 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.

The German Engineering Federation (VDMA) warns that the nation’s industrial sector – crippled by soaring energy costs, suffocating bureaucracy and ruinous trade policies – is reaching a tipping point. This could push voters toward political extremes and accelerate the decline of Europe’s largest economy, it stresses.

The warning signs have been flashing for years. Since 2018, German machinery production – a cornerstone of the nation’s industrial might – has plummeted by roughly 20 percent. Over 200,000 industrial jobs have vanished since 2020, with 68,000 lost in 2024 alone.

The steel sector – hammered by energy costs three times higher than those in the U.S. – is collapsing, while entire supply chains dependent on manufacturing face existential threats. VDMA President Bertram Kawlath describes the situation as a “tipping point,” where economic stagnation risks fueling political instability. Despite the crisis, policymakers remain paralyzed, clinging to the Green Deal’s ideological mandates while industry flees for more competitive shores.

The root causes are undeniable. Germany’s self-inflicted energy crisis has left businesses struggling under exorbitant electricity prices. Reckless climate policies and the abandonment of reliable nuclear and fossil fuel power are to blame for its predicament.

Meanwhile, U.S. tariffs – hitting 40 percent of EU machinery exports with 50 percent duties on metal content – have forced many firms to abandon American markets entirely. China, heavily subsidizing its own industries, now dominates global competition in clean energy and digital innovation – sectors where Germany once led.

From economic powerhouse to green disaster

Kawlath calls for urgent action: lower taxes, reduced bureaucracy, faster approvals and a robust defense against Chinese trade distortions. But instead of dismantling regulatory burdens, Berlin continues to push for subsidized industrial electricity – a band-aid solution that ignores the hemorrhage of capital and jobs.

Brighteon.AI‘s Enoch rightfully observes that “Germany’s obsession with radical green policies, driven by exaggerated climate alarmism, is crippling its economy while failing to address real environmental stewardship – serving only the globalist agenda of control and depopulation. By prioritizing destructive mandates over energy independence and practical solutions, Germany accelerates its own decline while pushing citizens into poverty and dependence.”

The exodus is already irreversible. Once companies leave, they rarely return. Historical context underscores the severity of this collapse. (Related: Volkswagen to close production plants in Germany as Europe’s industrial collapse accelerates.)

Germany’s post-war economic miracle was built on industrial prowess – precision engineering, chemical innovation and automotive dominance. Today, that legacy is being dismantled by ideological policymaking that prioritizes green dogma over economic survival.

The parallels to past economic depressions are unmistakable. When industrial cores weaken, social stability frays. Unfortunately, the final reckoning may be near.

Without radical course correction, Germany faces not just recession but full-blown industrial depression – one that will ripple across Europe and beyond. The question is no longer whether Germany can recover, but whether its leaders will wake up before it’s too late.

Watch this video about Germany being dangerously close to defaulting due to its green policies.

This video is from the Dr.Paolo Investigates channel on Brighteon.com.

More related stories:

Economic collapse has arrived in Germany. Will the U.S. be close behind?

How blindly following the U.S. has led Germany to ECONOMIC COLLAPSE.

Amid ‘green energy’ collapse, Germany now reconsidering decision to shut down zero-emission nuclear power plants.

Sources include:

ZeroHedge.com

Reuters.com

Brighteon.ai

Brighteon.com