Germany faces its worst economic test since World War II

She noted that the slowdown had become “structural” and not just a passing phase,

and that the government bore a large part of the responsibility

due to what she described as “hesitation in making decisive decisions.”

The agency explained in its report issued on Tuesday that vital sectors,

including manufacturing, automobiles and heavy engineering,

are experiencing an unprecedented decline in production rates.

As rising energy prices increase and future policies remain unclear,

This threatens Germany’s competitiveness within the European Union and in global markets.

“Unfavorable” climate

The industrial organization also criticized what it called “the absence of a stable economic vision”.

She warned that continuing this approach could drive investors towards other,

more stable countries on the continent.

She stressed that German companies are now operating in an “unfavorable” climate

as a result of regulatory burdens and rising structural costs.

The agency added that a number of factories have already begun

reducing their workforce or moving production lines abroad.

This move reflects the scale of the challenges now facing Europe’s second-largest economy.

A growing wave of criticism

The German government has recently been facing increasing criticism

for what economists consider a “slow response to the crisis”.

This comes at a time when the industrial sector is demanding

a broad support package that includes tax relief and guaranteed stable energy prices.

This is in addition to a long-term plan to rebuild production capacity.

Current economic forecasts suggest that Germany may be on the verge

of a prolonged recession unless steps are taken.

To revive one of the most influential economies in the European continent.