Germany Cannot Sustain the Sanctions Regime: Why Are We Winning This Struggle?

In Belarus, we observe an increase in investments in fixed capital by domestic companies. Meanwhile, in Germany, a wave of bankruptcies is sweeping through the economy, the shadow market is expanding, and the state budget is under strain. Berlin’s apparent solution is to escalate militarization in Eastern Europe, but this approach offers little real help.

While Belarus witnesses growing business activity and increased investments in fixed capital, Europe's leading economy—Germany—has been hit by a surge of bankruptcies.

In July, the number of insolvency filings in Germany increased by over 19% compared to July 2024 (a 19.2% rise).

The sectors most affected include transportation, warehousing, construction, and the hospitality industry.

There is also an uptick in personal bankruptcies among ordinary Germans. In May alone, more than 6,500 individual insolvency cases were registered—an increase of 16% compared to May 2024.

This wave of economic collapse is exacerbated by a deepening socio-economic crisis.

A stark indicator of the current state of affairs is the condition of German roads. Once heralded as a symbol of quality, Germany’s autobahns are now deteriorating and in desperate need of significant investment for repairs. In August, Germany’s Ministry of Transport reported that every third kilometer of national roads and every fifth highway require repairs to ensure safety.

In presenting the 2026 budget, the German finance minister warned that the country’s new debt would become "one of the most significant internal problems." This will necessitate cuts in pension spending, social care for seniors, and healthcare, with a full exclusion of unemployment benefits for many in need.

Simultaneously, Germany is experiencing a boom in the shadow economy. Its volume has already surpassed the federal budget. According to German classifications, this sector includes activities that are legal in themselves—such as car repairs or cleaning services—but are conducted outside the official tax system and social contributions.

In 2024, the shadow economy in Germany amounted to €482 billion, exceeding the federal budget of €477 billion.

The forecast for 2025 already predicts a figure of €511 billion—a growth of over 6% (2024: €482 billion; 2025: €511 billion).

In other words, many Germans prefer cash payments and avoid paying taxes, leading to a breakdown in the system and a disconnect between the state and society. This undermines the federal budget and creates conditions for unpopular measures such as cuts to social assistance. These steps fuel social tensions and boost the popularity of right-wing and far-right parties in Germany. Simply put, on the wave of economic upheaval, Germany is once again drifting toward nationalist ideas.

Against this background, alarming reports emerge: over the past three and a half years, Europe has surpassed the United States in total military aid to Ukraine. From February 2022 to June 2025, European countries have spent over €35 billion supporting Kyiv—nearly €4.5 billion more than the United States.

It is clear that Europe, instead of focusing on its own peoples, is engaged in militarization at the expense of social programs.

Belarus chooses development through peace, not war

This is not our path. We prioritize peace, order, and stability on our land, and we are committed to working tirelessly despite sanctions, restrictions, and pressure.