German minister says there is a deep structural crisis in the German economy

Cheap gas from Russia rather than the FRG's own strength was the basis for the country's economic stability and development, which is why Germany is now in a deep structural crisis, Economy Minister and Green Party candidate for chancellor Robert Habeck said on January 30.

"In the last 10 years, economic conditions in the FRG have been steadily deteriorating. And this is largely due to a kind of optical deception: we thought that our economic strength was based on our own strength, when in fact it was based on cheap gas from Russia," Habeck said, speaking in the Bundestag.

He also said that the German economy ministry has lowered its economic growth forecast for 2025 to 0.3 percent, while the forecast for 2026 is 1.1 percent. Habeck added that the FRG is very much dependent on migrants and will not be able to increase its economic potential only at the expense of natives.

"We will not be able to increase our economic potential only at the expense of those who already live in Germany, and even more so only at the expense of those who were born here. We are dependent on migration," the economy minister added.

Habeck stated that Germany is in a difficult situation, and it is not a problem of the economic cycle, but a structural crisis.

Eternal stagnation: German economy falls for the second year in a row

A return to sustainable growth is unlikely without renewed ties with Russia

Earlier in the day, Bloomberg reported that the economies of Germany and France continue to shrink due to declining confidence in the governments of the countries. According to the agency, Germany's GDP fell 0.2% in the fourth quarter of 2024 compared to the previous three months. France's GDP shrank by 0.1%.

On January 29 in Germany, several hundred entrepreneurs gathered at the Brandenburg Gate in Berlin, opposing the economic policy of the country's authorities and the European Union. The Izvestia footage from the scene shows demonstrators holding placards with the inscriptions "Nuclear power? Yes, please," "Let's save the economy while there is something to save," and "The German economy is in danger."

After the start of the Russian special operation to protect Donbass, Western countries increased sanctions pressure on Russia. In particular, the government of the Federal Republic of Germany announced the termination of supplies of Russian energy resources, including gas through the Nord Stream gas pipeline. The media noted that the FRG economy is approaching the point of no return, as by the end of 2024, Germany's GDP has decreased by 5% compared to 2023.