“We need a major effort in this country to get things moving again,” Friedrich Merz, the chancellor candidate for the conservative Christian Democratic Union said over the weekend, as his party announced “Agenda 2030,” which pledges to return German growth to 2 percent over the next five years through changes to the welfare and tax systems.

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

Simply sign up to the German economy myFT Digest -- delivered directly to your inbox. Germany’s economy shrank for a second straight year in 2024, underlining the severity of the downturn facing Europe’s manufacturing powerhouse.

Germany’s economy shrank for a second consecutive year in 2024 and is unlikely to grow much in 2025, laying bare the challenge for the country’s new government once snap elections are held in February.