The German economy is in a perfect storm. They have higher energy prices because of their bans on Russian energy imports. Their agriculture has higher input costs because of their bans on Russian and Belarussian fertilizer, plus the bans on Russian energy imports. They lost a huge car export market when they stopped selling to Russia. For that reason they switched places with China as a world car exporter. They have higher interest rates which depress consumption. And their car industry is losing the race to ramp up modern EV production. At the same time the government will have to increase defense spending. And because they seem to be on a rush a lot of this will be done with weapons imports from the US instead of own production.
Machine tools exports to Russia have collapsed because of their sanctions. And China increasingly makes its own machine tools so it is ceasing to be an export market.
The transport aircraft industry is more positive. The trouble with Boeing and the 737MAX mean higher demand for the A320NEO. But at the same time they won't be selling aircraft to Russia anymore, and China is starting to produce the C919. So in the long run they will likely lose these markets for good. Thankfully the Indian market is starting to perk up.
The software and hardware industry in Europe is an unmitigated disaster of course because of constant sabotage by US tech companies which isn't properly protected by the EU Commission like it should have been. Even if you make a successful software company, the huge market capitalization of US companies thanks to their inflated stock market means you will likely be bought out and the jobs will be moved somewhere else. European consumer electronics brands have been dead for like three decades. Without consumer electronics you cannot sustain a mass market semiconductor market.
