Blaming others for one’s own obvious failure is pitiful. Germany’s Green Economy Minister Robert Habeck has done exactly that. He has charged U.S. President Trump with responsibility for Germany’s decline.

Green socialism by EU design is a matter of faith. Climate change is entirely man-made, the sun provides us with free energy, and the green transformation promises an economic miracle – you have to be deeply committed, given Germany’s economic disasters, not to be branded a heretic.

In Germany, it is Green and socialist politicians like Robert Habeck who, under the guise of climate policy, are erecting a command economy that is now collapsing before their eyes. Self-criticism? None. Instead, they resort to the familiar hunt for a culprit: of course, Donald Trump’s tariffs are now said—retroactively (do they have time machines in Berlin?)—to have plunged the German economy into recession for the past three years.

This is not only absurd; it is a disgrace to the political culture of Europe’s largest economy. Yet it also reveals the desperation of leaders who clearly lack the intellectual capacity to confront their own ideological blindness.

Media and the Globalist Nexus

Politicians like the Green socialist Robert Habeck survive their political crises and collisions with reality because they are shielded by a media cordon sanitaire. For years, the largely ideologically driven media in Germany and Europe have aligned with state-mandated narratives.

The nucleus of the EU globalists—climate policy—is their last line of defense. Here, the future of both the EU and Germany is at stake. Will they, for rational reasons, return to nuclear power? Will they negotiate with Putin’s Russia to restore cheap gas? Or will they continue down the path of a total command-and-control economy, ridden to death by taxes and regulations?

The so-called “Green Deal” is the critical factor in Germany’s and Europe’s decline. While presented as a necessary shift toward a cleaner future, it has instead become a convenient euphemism for deindustrialization. The policy has failed to deliver on its promises of economic transformation.

Instead of providing the green jobs and sustainable growth it promised, the Green Deal has become a political catchphrase that has wreaked havoc on traditional industries, particularly in energy-intensive sectors. The Green Deal is nothing more than a Keynesian artificial economic model replacing a dying industry—and it is controlled by Brussels’s political apparatus. That makes it a powerful political vehicle—until it breaks down.

Germany’s Ongoing Recession

This policy pushed Germany into a perpetual recession, its longest economic crisis since World War II. As so often during his tenure, Habeck had to revise his overly optimistic growth forecast again just yesterday. Officially, Berlin is forecasting stagnation.

But when you subtract the exorbitant government spending—Germany has now reached a spending ratio of 49.5%—it becomes clear that the private sector is shrinking. Above all, industry and construction—with PMIs clearly below 50 for years—are unable to recover.

Its productivity rate has been declining since 2017, a consequence of an increasingly burdensome state apparatus that consumes about 4% of GDP—some €146 billion annually. There’s no sign of these costs coming down, and no one dares to challenge the political class responsible for this economic quagmire.

Capital Flight: Merz Won’t Stop the Bleeding

What’s worse is that this ideological experiment is costing Germany its middle class. Small businesses—the backbone of Germany’s economy—face an existential crisis. The government’s COVID-19 response only accelerated the decline of the SMEs that form the core of Germany’s economic structure.

These companies are suffocated by overregulation, high energy costs, and an ever-expanding welfare state. The result is a shrinking middle class and growing dependence on the state.

The German economy is also suffering from a massive outflow of investment. In 2024 alone, Germany lost €67 billion in direct investments, and the trend shows no sign of abating. This capital flight is especially damaging because it destroys well-paying, valuable jobs that could have anchored future growth. Instead of addressing the root causes, Germany’s leadership clings to a failed climate agenda that drains the nation’s economic vitality.

The Need for a Radical Shift in Policy

The reality is that the EU’s protectionism, bureaucracy, and devastating climate agenda are hastening Germany’s economic decline, while its leaders remain fixated on political expediency. The nation’s industrial heartland is being hollowed out—a giant rust belt in the making.

The future looks bleak unless Germany’s leaders face the facts and radically shift their approach to governance and economic policy. The green-socialist ideology has failed, and Donald Trump has just shone a spotlight on this fact.

Germany needs to reduce state interference, slash bureaucratic costs, and embrace free-market principles and a pro-business environment to grow out of its self-made trap. Above all, Germany must stop pursuing the illusory dream of a “green economy”—this might hurt tens of thousands of subsidized companies, but it’s worth the pain in the long run. The country should urgently push for the removal of hidden trade barriers and regulatory hurdles that are stifling growth and hampering international competitiveness.

With its heavy reliance on exports, Germany must focus on rebuilding its economic partnerships, particularly with the United States. This means working toward a level playing field, where trade can flow freely and without unnecessary barriers. The sooner Germans wake up, the sooner they can reverse the economic damage inflicted by misguided policies and ideological madness.

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Thomas Kolbe, born in 1978 in Neuss/ Germany, is a graduate economist. For over 25 years, he has worked as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.