Overview

• German industrial production has declined by 11% since 2019, with an additional 0.5% drop expected in 2025, marking the fourth consecutive year of contraction.
• Industry leaders at the Hannover Messe have expressed dissatisfaction with proposed government measures, including a rapid minimum wage increase and new regulations, which they argue could hinder economic recovery.
• Calls for structural reforms include reducing bureaucracy costs by 25% within four years, lowering corporate taxes, and ensuring affordable energy to restore competitiveness.
• Optimism remains in industrial innovation, particularly in AI and renewable energy, with progress such as reducing wind turbine construction times from seven years to one year.
• The CDU/CSU and SPD coalition plans to lower electricity taxes and halve transmission network charges, but industry leaders urge broader reforms to prevent further deindustrialization.