Germany’s Tepid Growth Forecast Exposes Deeper Economic Vulnerabilities Threatening U.S. Interests

Germany, Europe’s largest economy, recently slashed its growth forecast to a meager 0.2% for 2025, with only a slight rebound expected in the following years. This flagging recovery underscores endemic structural challenges that threaten not only the German economy but also the broader transatlantic alliance and America’s economic interests. Chancellor Friedrich Merz’s administration, newly in power, is scrambling to revive growth after two years of contraction, framing this as a race against time. Their ambitious plans include a colossal 500 billion-euro investment fund targeting infrastructure upgrades and a push to slash bureaucratic red tape. Yet, despite these promises, deep-rooted inefficiencies—like...