The German economy has shrunk for two years in a row, will stagnate in 2025, and hardly grow thereafter. Faced with deep-seated structural challenges, Europe’s powerhouse is in an economic existential crisis.

Auto industry jobs have long been the lifeblood of the German town of Luedenscheid but now, a trade union official says, the sector’s woes have sparked fears it will turn into an “open-air industrial museum”.

Insolvencies and layoffs have cast doubt on the town's future prosperity, echoing wider anxieties in Europe's biggest economy as it heads toward February 23 elections. Politicians