Germany’s economic decline is much more severe than most people think. The country is actually in free fall. pic.twitter.com/FPOplP101R
— Thorsten Polleit (@ThorstenPolleit) August 13, 2025
Investor morale collapsed. “The economic sentiment index fell to 34.7 points from 52.7 points in July, while analysts polled by Reuters had pointed to a reading of 39.8.” https://money.usnews.com/investing/news/articles/2025-08-12/german-investor-morale-falls-more-than-expected-in-august-zew-finds
The economy shrank again. “Germany’s economy contracted by 0.1% in the second quarter, as demand from the United States slowed following months of strong purchases in anticipation of U.S. tariffs.” https://money.usnews.com/investing/news/articles/2025-08-12/german-investor-morale-falls-more-than-expected-in-august-zew-finds
The mood turned sour. “Germany’s ZEW Economic Sentiment dropped to 34.7 in August 2025, ending a four-month rise as trade deal disappointment.” https://otetmarkets.com/blog/news/germany-zew-economic-sentiment-august-2025/
Experts are done sugarcoating. “Germany must at last do its homework and tackle thoroughgoing reform… So many electoral gifts are being distributed that huge budgetary holes are opening up.” https://www.msn.com/en-gb/money/other/germanys-economy-at-risk-expert-warns-as-merz-nears-100-days/ar-AA1KfFH2
The real cliff goes unmentioned. Industrial output flatlined. Exports stalled. Energy costs are still punishing. The coalition’s first 100 days involved mostly handouts, diesel subsidies, hospitality bailouts, and pension boosts. No structural reform. No tax overhaul. No deregulation. Just giveaways and finger-pointing. The ZEW collapse isn’t a blip; it is the alarm. Germany isn’t drifting. It is falling.