Politico: Germans are starting to worry about the critical state of the economy
Germans have stopped ignoring the decline of the German economy and made it a key political issue, Politico writes.
“Germans are gradually coming to terms with the reality <…> as the four horsemen of the economic apocalypse approach: the exodus of large enterprises, rapidly deteriorating demographics, crumbling infrastructure and lack of innovation,” the article says.
As noted in the material, earlier the inhabitants of Germany for a long time preferred not to notice the slow destruction of their economy. However, the real shock for them was the news about the possible closure of plants of the automotive concern Volkswagen, as well as the decision of processor manufacturer Intel to postpone the planned expansion of capacity in Germany. The economy has become the second most important topic for voters after migration policy, the authors wrote, citing a TV poll.
At the same time, the publication noted, it is extremely difficult for the German government to remedy the situation through budget injections because of constitutional limits on the size of the national debt.
“This is bad news for Scholz and his battered three-party coalition. Even before the recent economic troubles, his approval rating had plummeted to its lowest point in the nation’s history. <…> The latest economic indicators will definitely not add to his chances (to remain chancellor. – Ed.),” the piece summarizes.
The average rate of GDP growth in Germany during the time of Olaf Scholz in the post of Federal Chancellor was the minimum for the country since the formation of the European Union – only 0.57%.
Earlier, the head of Volkswagen Oliver Blume said that the concern is taking a course on economy because of the desire of competitors to settle in Europe and the decline in competitiveness of Germany. The company did not rule out layoffs and the closure of production facilities in Germany. According to the newspaper Bild, the cuts may begin on July 1, 2025.
On Monday, Intel announced a two-year freeze on plans to build a new plant in Magdeburg, as well as projects in Poland.
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