Europe’s industrial core, long anchored by Germany, is entering a period of structural decline driven by energy disruption and global competition. The loss of cheap Russian gas, persistently high electricity costs, and deindustrialization trends are undermining the continent’s manufacturing base—from chemicals and steel to automobiles. Germany, once the powerhouse of European industry, now faces shrinking output, offshored investment, and the erosion of its post–Cold War economic model. Without bold policy to secure affordable energy, integrate markets, and support strategic sectors, Europe risks a future of stagnation, social unrest, and diminished global influence.
