Massive Layoffs Signal Deepening Crisis in German Industry | DW Business

Dec 10, 2024 | Germany's industrial heavyweights are slashing jobs as the country struggles to escape its economic funk. Volkswagen made headlines when it said it wanted to curb employee pay and cut factories. Now, Ford and steelmaker Thyssenkrupp are saying thousands of jobs in Germany are on the line. How can Europe's top economy dig itself out of this hole?

Germany's Downfall: Can a New Government Turn Things Around? | To The Point

Nov 14, 2024 | Germany’s government coalition collapsed the day Donald Trump was announced winner of the US elections. Now, Germans will have to decide who will rule the country in a snap election in February. Until then, little else will get done. Olaf Scholz has become a lame duck chancellor - at a time when Germany needs strong political leadership more than ever: the economy is struggling, society is divided. Europe’s heavyweight has come to a halt, including in foreign policy. That’s especially bitter for Ukraine: while its two biggest supporters, the US and Germany, are stuck in a power vacuum, its war against Russia continues to escalate. On To the Point we ask: Germany's downfall: can a new government turn things around?

Featuring Guests:
Michaela Küfner, DW's Chief Political Editor
Felix Lee, SZ Dossier
Melinda Crane, US Expert

Germany's Government Confirms Second Year of Recession | DW News

Oct 9, 2024 | The German government has updated its growth forecast for the country’s economy. It is now expecting GDP to drop 0.2 percent for this year, making it the second year in a row with a shrinking economy. We’re talking to ING chief economist Carsten Brzeski about the reasons for Germany’s weakness, how the country stacks up compared to other economic superpowers – and what the future will hold.

Germany, Once a Powerhouse, Is at an Economic ‘Standstill’

THE NEW YORK TIMES: The economy shrank last year and is not predicted to grow much in 2024. Farmers are angry, industrial output is falling and the government is bickering.

Germany started the year with Berlin’s streets choked with tractors and farmers blaring horns in furious protest of proposed budget cuts. Then train engineers walked off the job to demand better pay, stranding commuters and carloads of freight and leaving the country angry and gridlocked.

The same could be said for the state of the German economy. Last year it contracted 0.3 percent, official figures showed this week, making it not only the largest economy but also the slowest growing among the 20 countries using the euro. Industrial production has fallen five months in a row.

“The economy is at a standstill in Germany,” said Siegfried Russwurm, the president of the Federation of German Industries. “We don’t see any chance of a rapid recovery in 2024.”

Since it was rebuilt after World War II, Germany has been Europe’s main driver of economic growth, becoming an industrial powerhouse known for vast factories and fine-tuned engineering.

But now its automakers must compete with relatively cheap electric cars from China, and it vies with the United States to attract tech giants. There is a growing realization that Germany has not been successful updating its industry with sufficient flexibility and digital know-how to remain competitive. » | Melissa Eddy, Reporting from Berlin | Thursday, January 18, 2024

The Telegraph: “Britain to Outgrow Germany for Years to Come as Eurozone Growth Engine Stutters”

THE TELEGRAPH: High interest rates risk plunging Europe into recession while UK expected to rebound

UK growth will outpace Germany and the eurozone for years to come as the Continent faces a deeper recession caused by higher interest rates.

While both the German and UK economies shrank in the three months to September, putting both at risk of recession, analysts at UBS expect Britain to bounce back within a year.

That is unlike Europe’s largest economy. Berlin is already grappling with a budget crisis after Germany’s top court ruled that the government broke the law by using Covid cash to fund net zero spending.

House prices across the country have also suffered double-digit declines. » | Tim Wallace | Friday, December 29, 2023

If you believe this cr**, you’ll believe ANYTHING! There is no way that the weak UK economy is going to outgrow the much stronger German economy. The only way that this might be made to appear so is by the use of sophistry in statistics.

Diese Behauptung ist lächerlich! Die deutsche Wirtschaft in den kommenden Jahren wird mit geringem Aufwand schneller wachsen als die britische Wirtschaft. Die deutsche Wirtschaft wird in keiner Weise von Großbritannien entwachsen sein. Überhaupt nicht! Schön wäre es für uns Briten; aber dies wird nicht passieren. – © Mark Alexander

Germany's Troubled Economy Fuels Far-right Rise | DW News

Sept 1, 2013 | Germany's economy is struggling, and important economic indicators are pointing in the wrong direction. Ordinary Germans are worried, causing a loss of faith in the country's traditional parties.

Merkel Leaves the German Economy with Trouble under the Hood

THE NEW YORK TIMES: Chancellor Angela Merkel steered Europe through crises, and Germany has boomed during her tenure. But she has ducked changes needed to ensure the success lasts, analysts say.

During Chancellor Angela Merkel’s tenure, economists say, Germany has neglected digital infrastructure, bungled an exit from nuclear power and become dependent on exporting to China. | Bernd von Jutrczenka/Picture Alliance, via Getty Images
During her 16 years as Germany’s chancellor, Angela Merkel has become an international avatar of calm, reason and democratic values for the way she handled crises that included a near financial meltdown of the eurozone, the arrival of more than a million migrants and a pandemic.

Today Germany is an economic colossus, the engine of Europe, enjoying prosperity and near full employment despite the pandemic. But can it last?

That is the question looming as Ms. Merkel prepares to leave the political stage after national elections on Sept. 26. There are signs that Germany is economically vulnerable, losing competitiveness and unprepared for a future shaped by technology and the rivalry between the United States and China.

During her tenure, economists say, Germany neglected to build world-class digital infrastructure, bungled a hasty exit from nuclear power, and became alarmingly dependent on China as a market for its autos and other exports.

The China question is especially complex. Germany’s strong growth during Ms. Merkel’s tenure was largely a result of trade with China, which she helped promote. But, increasingly, China is becoming a competitor in areas like industrial machinery and electric vehicles. » | Jack Ewing and Melissa Eddy | Friday, September 17, 2021

SophieCo: Expecting Migrants to Enrich German Economy Is a 'Fairytale' - Right-wing AfD Party Leader, Frauke Petry

The notion of migrants arriving in Germany and enriching the economy has proven to be a "fairytale," the leader of the right-wing Alternative for Germany (AfD) party told RT, adding that Chancellor Angela Merkel has given up the country's borders.