Germany’s economic model, once driven by cheap Russian gas and strong exports to China, is no longer sustainable, leaving the country in stagnation and uncertainty. Developing a new growth strategy will be the main challenge for the government elected on 23rd February. The economy has seen no real growth for five years.
Ahead of a general election on Sunday, a national debate is raging about how to revive Germany’s economic fortunes.
Several factors have contributed to Germany’s decline from industrial leader to post-pandemic struggler, including excessive bureaucracy, a shortage of skilled workers, slow technological adoption, and unclear direction from the outgoing government. Rising competition from China and high energy costs due to Russia’s war in Ukraine have worsened the situation.
In comments with Yahoo Finance, Klaus Geissdoerfer, CEO of EBM-Papst, highlighted the need for more business-friendly policies, criticising Germany’s complex regulations. He pointed to confusion over the Building Energy Act, which hurt demand for the company’s heat pump fans, and burdensome compliance requirements from a 2023 climate law.
via Yahoo