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Germany: Europe’s Sick Man or Phoenix? What the 2025 Elections Will Bring

01/29/2025

Germany: Europe’s Sick Man or Phoenix? What the 2025 Elections Will Bring

Germany has already been in recession for two years. Businesses believe that after the upcoming federal elections, a radical economic and political shift is needed. But while some see a crisis, others recognize an opportunity to transform Europe’s largest economy. What does the German economy expect from the new government in Berlin, and what opportunities are emerging amid these challenges?

Alarm from the business community

"The economy is declining. The unemployment rate is rising. Germany is becoming less and less attractive to investors," warns Rainer Dulger, president of the Employers’ Association. His list of demands is clear: lower energy costs, lower taxes, more financial incentives for investment, more flexible labor law, a freeze on social spending and, above all, less bureaucracy.

As reported by Deutsche Welle, the situation in industry is particularly challenging. The Federation of German Industries (BDI) reports that production today is lower than it was five years ago. "A country that is becoming ever more expensive for investment must also become better and better if it wants to be a place where investment happens at all. But that is no longer the case in Germany," Dulger emphasizes.

Challenges, but also opportunities

However, behind the seemingly gloomy picture there are also significant opportunities. While traditional industrial sectors are going through a painful adjustment, new areas of growth are opening up:

  • Green transformation: The shift to renewable energy sources is creating a need for new technologies and experts
  • Digitalization: Germany is rapidly modernizing its industrial base
  • Skilled workforce: Demand for qualified workers remains high, especially in technical professions

A new era for skilled workers

Despite the economic challenges, the German labor market continues to strongly seek qualified professionals. Electricians, plumbers, welders, and other technical specialists are especially valued. As the country invests in infrastructure renewal and the green transition, the need for qualified workers could grow even further.

What will the elections bring?

The upcoming federal elections on February 23 are being given almost fateful significance. A major action planned for January 29, bringing together around 100 business associations, is sending a clear message to politicians: a turnaround is needed.

But regardless of the election outcome, Germany retains its key advantages:

  • A strong industrial base
  • Top technological expertise
  • A stable business environment
  • A leading role in the European economy

A look across the Atlantic

A particular challenge is the announced return of Donald Trump to the White House. In 2024, the US became Germany’s most important trading partner, accounting for around 10% of German exports. Trump has announced stricter trade controls and new tariffs, which particularly worries German exporters.

Concrete employment opportunities

Despite the economic challenges, there is currently significant demand for qualified workers in several key sectors:

Construction sector and installations

  • Electricians and electrical installers (especially in Bavaria and North Rhine-Westphalia)
  • Plumbers and heating installers
  • Drywall installers
  • Carpenters and construction workers (especially in Munich and southern Germany)

Industry and manufacturing

  • Industrial electricians and electrical fitters
  • Locksmiths and welders
  • Production workers (including specialized positions such as rail vehicle manufacturing)

Skilled staff

  • Construction site managers
  • Technical staff
  • Medical workers

It is important to note that many companies offer:

  • Long-term contracts
  • Relocation assistance
  • Opportunities for professional development
  • Competitive salaries in line with German standards

Conclusion

Although Germany is going through a difficult period of adjustment, significant opportunities are also emerging behind the current challenges. For workers from Croatia and the region, this could be the ideal time to enter the German labor market. Countries undergoing transformation often offer the best opportunities to those who are ready to take part in change.

Germany may currently be the "sick man of Europe," but history shows that Europe’s largest economy always manages to recover - often emerging from crisis even stronger and more competitive than before.