DW had a comprehensive article, translated into English, about the German economy’s slump and political measures to revive it.
I initially thought of linking it to the Germany thread, but instead, I’ll link the Germany thread here if anyone is more inclined to discuss it there as well.
A few highlights, curated by myself, not AI.
Firstly, if economic discussion in Finland is colored by a lack of vision, paralysis, and constant whining, it seems a considerable pessimism has also settled in Germany. Naturally, my sample size is limited, and this relies mainly on following DW news and company comments. Every now and then, someone raves about the strength of the Mittelstand (SMEs), until another points out that energy costs have eroded competitiveness.
The current government is stimulating the economy with debt, but structural changes are also promised.
In European economic discourse, structural changes are easily a code word for export-led growth, where domestic demand is suppressed for the benefit of export companies. As I have been singing for years, an economy the size of Germany should already mature and start consuming what it produces itself. I know that in Finnish economic discussion, exports are a sacred topic, but for an economy the size of Finland, export-led growth is more realistic than for a behemoth the size of Germany. So, we will wait and see whether the structural reforms will fuel domestic demand or strengthen export companies.
The news mentions cutting bureaucracy, increasing working hours (the population is practically collapsing in Germany while immigration is being curbed), increasing productivity through digitalization, a reduction in corporate tax (it is quite high in Germany, 30%), and a reduction in energy tax.
At this point, I could also remind about the EU’s deregulation program.
In economic discussion, there are voices suggesting that the economy should not be propped up with subsidies, but rather allow unprofitable sectors to wither and reallocate resources to the future. I don’t know if this is a reference to the country’s automotive industry…
Germany’s economy is the largest in Europe, and the country is an important trading partner for Finland. Especially for small and medium-sized companies, economic traction in this region is important, so Germany’s recovery would be of paramount welcome not only for themselves, but especially for Finland and also for the whole of Europe.