In Germany, where three-quarters of buildings are heated by gas or oil, people shivered: In 2022, 5.5 million Germans felt they couldn’t afford to keep their homes warm.

Germany today is not just in recession — it’s in a deep systemic crisis of its own making. Once Europe’s industrial benchmark, the country now endures its longest downturn since World War II.

In February, Germany held an election that had many echoes of the one the United States held in November. Voters were incensed with inflation — especially electricity prices, which surged 80 ...