German Industry Voices Urgent Economic Reforms Amidst 2025 Downturn

In 2025, Germany’s industrial sector is sounding the alarm over worsening economic conditions, urging the government for critical reforms to restore competitiveness and secure energy supply. The German machinery and plant engineering association (VDMA) reported a 5% production decline this year and a continuing downward trend since early 2023, describing the situation as "the worst crisis since the early 1990s recession." VDMA President Bertram Kawlath called for deep reforms to halt production and innovation losses abroad, criticizing the SPD for insufficient responses and highlighting burdensome corporate tax rates and rigid labor markets as key challenges. Julia Schnitzler from Strassburger Filter revealed exports have fallen by over 10%, pressured by Chinese competition benefiting from cheaper energy and state support. The impact of US tariffs on steel and aluminum also threatens more than half of German machinery exports to the US, further endangering revenues.

Alongside this, the Brunsbüttel Industry Talk 2025 brought together around 100 political, administrative, and business leaders to discuss energy supply security and transformation. Frank Schnabel from Brunsbüttel Ports GmbH stressed the urgent need for Berlin to stimulate economic growth through reducing bureaucracy, accelerating infrastructure approvals, and ensuring affordable electricity. The event underscored Brunsbüttel’s strategic role in energy imports including LNG and future green hydrogen, vital for Germany’s energy transition.

Both the VDMA and the Federation of German Industries (BDI) express concern over the government’s inadequate reaction to these mounting industrial challenges, underscoring the necessity for swift, comprehensive economic and energy reforms.