Germany: “Deindustrialization is no longer just a creep” – WELT

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FifthFor nearly 20 years, Germany overcame its reputation as the “sick man of Europe” with a set of ambitious labor market reforms that unleashed its industrial potential and ushered in a sustained boom period, driven in particular by strong demand for machinery and cars from China. While Germany disappointed many partners because it exported far more than it bought, its economy boomed.

However, the boom years came at a price: economic strength led officials to a false sense of security. Their failure to implement further reforms now casts a shadow. Suddenly, a storm is brewing over the former European power, suggesting that the current recession is not just as “technical” as many politicians hope, but a harbinger of a fundamental reversal in economic fortunes that threatens to destabilize all of Europe and could add more turmoil to the continent’s already polarized political landscape.

In this major analysis, American journalist Matthew Karnichenig, head of the German version of “Politico” (like WELT, belongs to Axel Springer SE), mercilessly and in detail describes the weaknesses of Germany as a business outpost.

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