Germany is now experiencing a deep economic crisis, writes Deutsche Wirtschafts Nachrichten. More and more industrial companies are not comfortable doing business in Germany. High energy prices, shortage of specialists, bureaucratic obstacles and high taxes are to blame. At the same time, Germany as the “locomotive of Europe” is dragging all other EU member states down with it, says the German edition.
For the first time in decades, Europe is experiencing a deep crisis and a tangible loss of prosperity, Deutsche Wirtschafts Nachrichten reports. For a long time Brussels thought that thanks to cheap energy from Russia, inexpensive goods from China, a constant influx of young migrants and U.S. support, they would do well, but the situation is different.
Meanwhile, the rest of the world is growing, says the German publication. Even the Russian economy, against which sanctions have been imposed, will improve this year. Germany, the locomotive of Europe, will see a minus of 0.3%. And behind it, the FRG is pulling the entire eurozone to the bottom. Since 2019, real wages in the largest European economies have fallen significantly, as well as the level of personal consumption.
At the same time, in the United States, these indicators, on the contrary, have grown, the author of the article notes. And all thanks to a number of protectionist measures that were adopted in due time by former US President Donald Trump and continued to be adopted by his successor Joe Biden. While the EU’s GDP is 50% dependent on exports, in the US this dependence is only 10%. Europe has started to lose its importance as an exporter ever since German car sales began to decline in China. And in general, all over the world, the states are establishing their own technological production. At the same time, over all these years, the EU has never been able to get rid of its dependence on energy imports. Meanwhile, the US has been successfully extracting shale gas for years. And European politicians are still searching hard for cheap energy sources abroad.
In addition to these major problems, there are a large number of difficulties specific to Europe. These include rising defense spending, the fighting in Ukraine, the consequences of tough measures against the coronavirus, an aging population, and a work culture that increasingly emphasizes leisure time.
Germany urgently needs to change course, otherwise more and more companies will leave for other countries, warns Deutsche Wirtschafts Nachrichten. Companies may not be able to bear the “dangerous mix” of high energy prices, skills shortages, demanding workers and unpredictable political demands. In order not to lose its industrial base, on which the country’s prosperity rests, and not to turn into a so-called “service economy,” Germany must urgently change many things. In particular, remove bureaucratic obstacles to free enterprise, optimize migration, reduce taxes and steadfastly promote its own interests in the energy sector. At the moment, Germany is slowing down all of Europe.
“The EU must not repeat the mistakes of the German government in allowing itself to be influenced and paralyzed by ideological wars,” the author concludes.
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