Germany’s economy has been showing signs of stagnation since last year. At the end of 2025, Germany only marked a growth of 0.2 per cent despite Chancellor Friedrich Merz’s ‘Made for Germany’ investment offensive, which is intended to get the German economy back on track. Since last year, German companies have also been burdened by US tariffs. For the German economy, there is an urgent need for investment in modernisation and climate-neutral production. The German economy is not picking up momentum, and the profound changes in industry continue to affect the labour market.