As Germany’s industrial pillars falter—from chemicals to autos—Europe’s largest economy confronts a mounting crisis of costs, bureaucracy, and political drift. Industry leaders warn the country is edging toward a historic loss of competitiveness.

After extended back-and-forth, Germany's center-right CDU/CSU and center-left SPD have finally hammered out a coalition agreement. Friedrich Merz is likely to be the country's next chancellor.