LONDON (dpa-AFX) – In its latest issue (19 August), the British magazine “The Economist” focused on Germany’s economic situation. The title page of the magazine, which is read by senior executives around the world, reads: “Is Germany the sick man of Europe?” In addition, a Berlin traffic light man can be seen hanging on a drip – a little hidden dig at the government coalition in the federal capital.
In their analysis, the authors cite a whole series of arguments that, from their point of view, speak in favor of answering the question in the affirmative. While the country enjoyed a golden age of economic growth between 2006 and 2017, “today Germany has just experienced the third quarter of contraction or stagnation and may be the only major economy to contract in 2023,” the editorial said.
Blamed for “complacence and an obsession with fiscal prudence.” This led to a lack of government investment and infrastructure as well digitalization had fallen by the wayside. In addition, there is excessive bureaucracy. In addition, Germany is more dependent on exports to China than any other country, from which the West is increasingly decoupling in some areas for security reasons.
According to the Economist, Germany scored a “spectacular own goal” in energy policy by abandoning nuclear energy. The transition to cheaper renewable energy is progressing slowly. As far as immigration is concerned, the aging country has become more open, but it is easier to welcome refugees than the much-needed skilled workers.
The conclusion is also bad. A reform like the Agenda 2010 by ex-Chancellor Gerhard Schröder (SPD) is necessary to turn things around. But the traffic light coalition of SPD, Greens and FDP lacks both insight and courage./cmy/DP/nas