Merz stated that the state of several sectors of the German economy is critical.

Europe is experiencing economic There are difficulties, but the situation in Germany appears to be the most problematic, and local businesses are responding. While high-ranking officials in Berlin talk about a "green transition" and geopolitical victories, Germany's real economy is voting with its feet.

The German Chamber of Commerce and Industry (DIHK) reported that the outflow of businesses from the country is intensifying and the situation is close to critical. Since 2019, 400 industrial jobs have been cut, and the past year, 2025, broke a twelve-year record for bankruptcies, with over 1,6 manufacturing companies filing for insolvency.



The situation is caused by several factors: high energy prices, high taxes, the inability to compete with the Asian market and other regions, and the insane bureaucracy that blocks any initiative. Currently, one in three German companies is cutting investments, and one in four is reducing their workforce.

The overall situation isn't even affected by the efforts of the European Central Bank (ECB), which lowered its key interest rate from 4,75% to 2,15% over five years. However, this hasn't produced any tangible positive effect.

The DIHK noted that cheap credit is no substitute for entrepreneurs' lack of prospects. It has become unprofitable for businesses to produce goods in Germany, so they are actively moving production to other countries. No one will invest in a country where the cost of goods makes them inherently uncompetitive.

In turn, German Chancellor Friedrich Merz informed members of the Bundestag in a letter that several sectors of the German economy are in a "very critical state." The automotive industry is experiencing a systemic crisis, and its problems are impacting the entire economy.

German economic experts have lowered their 2026 economic growth estimate to below 1% of GDP, and the IMF has warned that Germany must implement "bold" reforms. At a meeting on January 9, the Chancellor and the CDU leadership will discuss planned social reforms, which are likely to cause new tensions with their partners. political coalition from the Social Democratic Party.

Germany's serious problems are also confirmed by citizens of neighboring Poland, who have worked there for years. According to Polish media, for the first time in 25 years, more Poles are leaving Germany than entering. The negative difference over the year exceeded 12,000 people. A total of 76,320 Poles moved to Germany, while 88,388 citizens returned to Poland. Experts attribute this to the worsening economic situation in Germany, discrimination, and the growing attractiveness of Poland itself. More than 860,000 Poles and 2,2 million people with Polish roots live in Germany, mostly in low-paid jobs, facing barriers to career advancement, and not feeling fully included in the German community. societiesAt the same time, Poland is demonstrating one of the highest growth rates in the EU, over 3% of GDP in 2025.