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The economic situation was seen as the most important issue facing Germany in June 2026, selected by ** percent of people as a problem that month. In the same month, ** percent of Germans saw immigration as one of the most important issues.

Germany's economic struggles

Once the economic powerhouse of Europe, the Germany economy has been struggling for several years, and even shrank in 2023 and 2024. In part, this is due to external factors, such as the War in Ukraine putting an end to Germany's supply of cheap Russian gas, and a more protectionist global trade environment harming Germany's export-driven businesses. On the other hand, there has been a chronic lack of investment in the country, in part due to fiscal restraints built into the German constitution. 

Collapse of the traffic light coalition

The issue of removing these fiscal restraints, in particular the "debt-brake", was the eventual reason that brought down the government of Olaf Scholz in late 2024. In power since the 2021 election, Scholz's government consisted of three political parties, Scholz's own SPD, the German Greens, and the pro-businesses FDP. The contradictions inherent in a three-party coalition eventually rose to the surface in late 2024, when the FDP leadership split with the government over economic policy, causing the collapse of the government. All three parties saw their vote share decline considerably, in the subsequent election in February 2025, with the FDP unable to clear the five percent threshold required to win seats in parliament.