In Germany, the economy is doing better than in France, but the surge in debt raises fears of a large-scale "budget crisis".

France has taken over the title of "sick man of Europe" from Germany, which has seen weak growth since 2019. Despite signs of recovery in the French economy, German economists remain cautious about the sustainability of this rebound. The recent report from the German Council of Economic Experts highlights significant concerns regarding Germany's budgetary situation, warning of a potential historic budget crisis due to increased spending financed by debt, particularly in defense. This critique comes as Chancellor Friedrich Merz faces scrutiny for his reform promises made during the 2024 campaign.