Crisis of confidence in Germany?: A European comparison and paths to new stability

Only 14 percent of Germans believe that the next generation will be better off than the current one (Edelman, 2025). Traditional parties are losing support, while populist movements are gaining ground. This trend is reinforced by the growing importance of social media. On the one hand, social media promotes transparency, while on the other, it undermines trust in established institutions through filter bubbles – in which algorithms mainly show users content that confirms their existing views – and the spread of disinformation. Dwindling trust not only creates short-term political instability but also deepens social divisions in the long term and can jeopardize social cohesion. This study analyses the extent of trust in different countries using a comprehensive index that measures trust in political, economic and social systems and compares them at European level.

The IW Trust Index shows that Germany is stable in the midfield in terms of the overall index from all three dimensions (political system, economic system and social system) in relative comparison to other European countries (8th place both in 2015 and in 2022) – although Germany is experiencing a drop in overall trust according to index point values. In terms of trust in the social system, Germany has fallen slightly from 9th place in 2015 to 11th place in 2022. While trust in the political system has deteriorated marginally compared to other European countries (from 6th place in 2015 to 7th place in 2022), trust in the economic system has neither improved nor deteriorated over the years (7th place in 2015 and 2022). However, Germany is threatened by a further deterioration in the level of trust in the following years up to 2024 – a development that can also be observed in other European countries. However, as the comparison is always made relative to other countries, the decline in confidence across Europe is not visible in this index. Countries such as Denmark, the Netherlands and Finland perform significantly better in comparison, as they are characterized by political stability, transparent institutions and a pronounced social cohesion.   

Various measures are needed to strengthen trust in Germany, including enhancing democratic institutions through political education and transparent decision-making processes, promoting media literacy to consciously deal with fake news and creating incentives for companies to anchor corporate social responsibility (CSR) more honestly and credibly. It is also crucial to promote social dialogue in order to counteract polarization and social fragmentation. Trust is not just a moral or social issue, but also a strategic resource for the future viability of a country. Targeted political and economic action is therefore necessary not only to halt the current loss of trust, but to reverse it in the long term.