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🔴 Germany is in crisis.
Manufacturing is shrinking. Energy prices are soaring. Labour shortages are crippling growth. And the once-mighty European engine is stalling. In this deep-dive documentary, we explain Germany’s economic slowdown in 2025, what it means for the future of the EU, and how political legacies like Angela Merkel’s energy policy and Friedrich Merz’s economic agenda are reshaping Europe’s power balance.

✅ Whether you're a student of geopolitics, an investor watching the eurozone, or a citizen worried about the cost of living — this video connects the dots between policy, global trade, inflation, migration, and economic strategy in simple yet intelligent terms.

🧠 TOPICS COVERED

Why is Germany’s economy slowing down?

Collapse in manufacturing: automotive, Mittelstand, exports

The German energy crisis post-Russia: LNG, renewables, nuclear phase-out

Labour shortages, demographics, and immigration

Angela Merkel’s legacy and Energiewende fallout

Friedrich Merz, CDU, and new conservative economic policies

The future of the eurozone and EU banking union

Trade relations with USA and UK in 2025

Brexit consequences, financial services, and new UK-Germany deals

Global shift in industrial policy: USA vs EU vs China

How this impacts YOU — wherever you live

📈 REFERENCES & DATA SOURCES

📊 German Federal Statistical Office (Destatis):
https://www.destatis.de

📊 European Commission – EU Economic Forecasts 2025:
https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts_en

🔌 German Energy Agency (DENA) – Energy Transition & Supply Reports:
https://www.dena.de/en/

📉 Deutsche Bundesbank – Monthly Economic Report:
https://www.bundesbank.de

📘 Angela Merkel’s Energy Legacy – DW Documentary:
https://www.dw.com/en

🧾 Friedrich Merz CDU Economic Policy Platform:
https://www.cdu.de

📄 OECD Labour Market Report 2025 – Germany:
https://www.oecd.org/germany/

📈 Inflation Reduction Act – US Department of Energy:
https://www.energy.gov

🤝 UK-Germany Post-Brexit Trade Initiatives:
https://www.gov.uk/government/news/uk-germany-economic-cooperation-2025

🎙️ FEATURED THREADS, COMMENTARY & BROADCAST REFERENCES
📺 BBC Newsnight | “Germany’s Role in the EU’s Future”
📺 DW Global Eye | “Post-Merkel Economics: Germany at a Crossroads”
📺 Bloomberg Markets | “Friedrich Merz and the Future of German Conservatism”
📺 France 24 – Business Daily | “EU Recession Risk 2025”
🎙️ The Economist Podcast | “Germany’s Decline: Structural or Cyclical?”

🧵 Join the discussion on social media:
🔹 Twitter: #GermanyRecession #EUEconomy2025 #EnergyCrisisGermany #MerkelLegacy #MerzEconomics

More videos on EU politics → https://www.youtube.com/playlist?list=PLBWac6sW8fRWGLz8ECEGsXBGmJGC99j1j

📲 Socials:
YouTube → @WorldPerspec

DailyMotion → worldpe

TikTok → @worldperspec

Twitter/X → @WorldPerspec

Instagram & Threads → @worldperspective2

Category

🗞
News
Transcript
00:00Germany's economic slowdown. Is the European engine stalling?
00:04Germany was once the strongest economy in Europe.
00:08It was often called the engine of the European Union.
00:11But now, that engine is slowing down.
00:15In 2025, Germany faces three major problems.
00:19A manufacturing decline, an energy crisis, and a shortage of skilled workers.
00:25This is not just a German problem.
00:27It is a European problem, because if Germany slows down, the rest of Europe slows down too.
00:34In this video, we explain each part of the crisis.
00:38We look at the long-term effects of Angela Merkel's leadership.
00:42We also examine Friedrich Merz and his ideas for change.
00:46By the end of this video, you will understand why the German economy is struggling,
00:52and what this means for the future of Europe.
00:54Manufacturing Decline
00:57Germany is known for strong industrial production.
01:02Its car companies, machine builders, and precision manufacturers have led global exports for decades.
01:08But in 2025, the situation has changed.
01:13Germany's manufacturing sector is shrinking.
01:15Factory orders from major trade partners like China and the United States have dropped sharply.
01:23Protectionism, trade tensions, and supply chain shifts are hurting German exports.
01:28The industrial decline is now clear in the numbers.
01:31Production has fallen for six quarters in a row.
01:36Many small and medium-sized companies are cutting jobs or closing.
01:40Some manufacturers are moving production abroad.
01:43The famous Mittelstand, Germany's small business backbone, is in trouble.
01:48These firms are not able to handle high energy prices, expensive materials, and a lack of workers.
01:56The danger of deindustrialization is real.
01:59The energy crisis
02:06Germany's energy crisis started many years ago.
02:08In 2011, after the Fukushima nuclear disaster, Chancellor Angela Merkel decided to shut down Germany's nuclear power plants.
02:16She launched the energy vendor, or energy transition plan.
02:21The goal was to shift to renewable energy sources.
02:25But Germany did not build enough solar and wind infrastructure in time.
02:29Instead, it became more dependent on Russian gas.
02:33By 2020, more than half of Germany's gas came from Russia.
02:37It was cheap and reliable until 2022, when Russia invaded Ukraine.
02:44As sanctions were applied, gas supplies were cut.
02:48Energy prices soared.
02:50German factories need stable, affordable energy.
02:54But in 2025, electricity and gas are still two to three times more expensive than before the Ukraine war.
03:03The government is building LNG terminals and signing new gas deals.
03:07But this is expensive.
03:09German industries are now moving to countries with lower energy costs, like Poland, the Czech Republic, and the United States.
03:18Labour shortage
03:20Germany has a serious worker shortage.
03:23This is caused by an aging population, low birth rates, and slow immigration processes.
03:30In the next five years, almost one third of German workers will reach retirement age.
03:36Skilled workers are in high demand, especially in engineering, manufacturing, healthcare, digital technologies.
03:45Germany has accepted migrants in large numbers.
03:48But integration is difficult.
03:50Many migrants face problems with language, paperwork, and skills recognition.
03:56As a result, they are not entering the workforce fast enough.
04:00Factories and hospitals are struggling to fill positions.
04:03This limits production and increases stress on the economy.
04:08political leadership, Merkel and Merz.
04:13Angela Merkel was Chancellor of Germany from 2005 to 2021.
04:18She was known for being stable, careful, and pragmatic.
04:22During her time, Germany stayed strong through many crises, including the Eurozone debt crisis, the migration wave, and Brexit.
04:31But Merkel avoided deep reforms.
04:34She postponed investments in digital infrastructure, education, and energy security.
04:39Her energy policy increased Germany's reliance on Russia.
04:45Her economic policy focused on stability, not transformation.
04:50Now, Friedrich Merz leads the CDU, Merkel's former party.
04:55Merz is a pro-business conservative.
04:58He wants to cut taxes for businesses, reduce government spending, encourage investment in industry, reform immigration to attract high-skilled workers.
05:10Merz believes Germany must return to economic strength through market-driven policies.
05:15But critics say his ideas could reduce social protections and increase inequality.
05:21Meanwhile, the current government, led by Olaf Scholz and the so-called traffic light coalition,
05:27is losing support.
05:30Voters are unhappy with rising costs, energy insecurity, and unclear economic direction.
05:36Right-wing parties like AFD are growing fast, especially in eastern Germany.
05:43People are worried about immigration, energy, and jobs.
05:48European impact.
05:50Germany is the largest economy in Europe.
05:54When it slows down, the rest of the European Union also feels the pain.
05:59In 2025, Eurozone growth is expected to be under 1%.
06:05Many countries that export to Germany, like Italy, Poland, and the Netherlands, are losing demand.
06:11Eastern European countries that depend on German factories are seeing job losses.
06:18Germany's slowdown also threatens the EU's climate goals.
06:22Without strong leadership in green energy, Europe may miss its climate targets.
06:27Geopolitically, a weaker Germany means a weaker EU.
06:32Europe's voice in trade and diplomacy is becoming quieter.
06:36What needs to change?
06:39Germany must act now.
06:42It needs structural reform, strategic investment, and political courage.
06:48Here are the key actions experts suggest.
06:52Invest in Industry 4.0.
06:55Focus on robotics, automation, green tech, and microchips.
07:01Fix vocational education.
07:04Train more young workers in skilled trades.
07:06Improve immigration systems.
07:08Make it easier for qualified workers to come, stay, and work.
07:13Cut bureaucracy.
07:15Simplify regulations for startups and industry.
07:18Balance energy supply.
07:20Secure, clean, affordable, and diverse energy sources.
07:25Angela Merkel gave Germany stability.
07:28Friedrich Matz wants bold market reforms.
07:31But Germany's future will need a new model.
07:34One that is green, digital, fair, and competitive.
07:38What next?
07:40Germany's slowdown is real.
07:42It is not temporary.
07:43It is structural.
07:45The country is losing industrial strength.
07:47Energy is expensive.
07:49The population is getting older.
07:51Politics are divided.
07:53This is a warning for the European Union.
07:56If Germany does not recover, the whole EU will suffer.
08:01But with the right reforms, Germany can lead again.
08:05Not just in industry, but in climate, innovation, and social balance.
08:11This video is part of the Europe on Edge series.
08:15If you want more deep analysis on the EU economy, German politics, and European transformation,
08:21please like, subscribe, and share.
08:26If you're still with us, thank you.
08:28This final section is for those of you who want to go one layer deeper.
08:34Germany's economic slowdown is not just a matter of declining output or energy prices.
08:41It reflects a broader shift in the architecture of the European economy,
08:46with profound implications for monetary policy, the financial sector, and international trade.
08:53Let us begin with Germany's fiscal and monetary posture within the European Union.
08:58Germany has long championed fiscal discipline across the Eurozone,
09:02a legacy of its post-reunification economic doctrine,
09:06and the Schuldenbremse, or debt break, embedded in its constitution.
09:11This framework places limits on public spending and borrowing,
09:15and it heavily influenced EU-wide agreements such as the Stability and Growth Pact.
09:21However, critics now argue that this rigid orthodoxy has become a straitjacket.
09:28At a time when public investment in digital infrastructure,
09:31defence, and green transition is desperately needed,
09:35Germany's refusal to abandon the debt break has created political friction,
09:40both at home and across the block.
09:42The European Central Bank, meanwhile, is walking a tightrope.
09:46On the one hand, inflation remains above target in parts of the Eurozone.
09:52On the other, weak German output and stagnation in France and Italy
09:56constrain the ECB's ability to raise interest rates further.
10:01The fragmentation risk, where monetary policy has uneven effects across member states,
10:07is rising again.
10:09Germany's financial sector, traditionally dominated by regional savings banks
10:14and large state-linked institutions like Deutsche Bank and Commerzbank is also under pressure.
10:21Low productivity growth, weak demand for new credit,
10:25and growing exposure to industrial and real estate downturns are tightening margins.
10:31Simultaneously, European Banking Union,
10:34the project to integrate supervision, resolution, and deposit insurance, remains incomplete.
10:41Germany has been a key holdout on mutualising banking risk.
10:45But with financial vulnerabilities increasing,
10:48that debate is rapidly reopening in Brussels.
10:51International dimension.
10:53Germany, the United States, and global trade.
10:571510.
10:58Germany's relationship with the United States has entered a new phase.
11:02Under the Biden administration and continuing into 2025,
11:07the US has pursued industrial policy on a scale not seen since the 1950s.
11:13The Inflation Reduction Act and the Chips and Science Act provide massive subsidies for clean energy,
11:19semiconductors, and advanced manufacturing.
11:21Much of it aimed at reshoring production.
11:25For German industry, this is a direct challenge.
11:28Companies like BASF and Volkswagen have already announced major investments in North America,
11:34where energy is cheaper, regulations are simpler, and public support is stronger.
11:39The EU, under pressure from Germany and France,
11:44is now attempting to respond with its own green industrial plan and a European sovereignty fund.
11:51But internal divisions, regulatory complexity, and fiscal limits make rapid mobilisation difficult.
11:58At the same time, Germany's trade relations with the United Kingdom are undergoing cautious reconstruction.
12:06Following years of disruption post-Brexit, Berlin and London are now quietly negotiating sector-specific trade arrangements,
12:14particularly in automotive components, financial services, and greentech collaboration.
12:20The recent UK-Germany Windsor Trade Facilitation Framework, signed in early 2025,
12:26aims to reduce customs friction for high-value manufacturing supply chains.
12:32Germany views the UK not only as a former partner,
12:35but also as a potential regulatory counterweight to China and the US,
12:40especially in standards for AI, robotics, and biotechnology.
12:45But trust remains fragile.
12:47German businesses are wary of UK political volatility,
12:50while British firms fear creeping EU protectionism.
12:54Still, the signal is clear.
12:56Economic pragmatism is slowly overcoming post-Brexit ideology.
13:01Final thoughts?
13:03Germany's crisis is complex, deeply structural, and interconnected with global economic realignments.
13:10The path forward requires more than just stimulus packages or tax tweaks.
13:15It requires rethinking Europe's economic model, from a low-risk, export-led system anchored in industrial strength,
13:24to a more adaptive, innovation-led, and internally resilient economy.
13:29The stakes are high.
13:31If Germany succeeds, it can once again anchor a stronger, greener, more unified European Union.
13:37If it fails, the fragmentation of the Eurozone, economically and politically, may accelerate.
13:44Thank you for staying with us through this detailed analysis.
13:47If you're part of the community that wants more depth, more data, and more insight into global economic transitions,
13:55you're in the right place.
13:58Please like, share, and comment below.
14:02Your engagement helps us continue producing content that respects your intelligence,
14:07and challenges the mainstream narrative.
14:10This was Europe On Edge, and we'll see you in the next episode.
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