Germany's economy on the verge of collapse: experts sound the alarm!

Klaus Dörre, Professor of Work, Industrial and Economic Sociology at the University of Jena, has made alarming statements about the current economic situation in Germany and Europe. In an interview, Dörre noted that there is a risk of massive deindustrialization in the EU, while industrial production has already collapsed. According to Dörre, this crisis is not only limited to Germany, but also has broader implications for the entire European economy.

Dörre explained that the current economic crisis was partly staged, especially in the auto industry. As an example, he cited Ford's decision to close the factory in Saarlouis, which was based on corporate strategy considerations and not the result of objective necessity. In his opinion, this calls into question the German social partnership model and marks a breach of taboos in industrial relations.

Dörre's demands and criticism of the government

The sociologist warned that Germany may be facing a new era, the effects of which could differ from other countries with a time lag. He sharply criticized the traffic light government for its lack of planning security and insufficient investment in industrial and economic policy. Dörre called for a long-term industrial policy with an annual investment requirement of at least 600 billion euros and expressed himself negatively about the sudden cancellation of e-car funding and the lack of climate money.

He emphasized that environmental sustainability is not possible without social justice and noted that the social and political left is on the defensive because they have failed to politically mobilize inequality. Over 90 percent of the population calls for a more equitable distribution of wealth, but belief in the possibility of change is dwindling. Dörre currently sees no left-wing party in Germany that could mobilize hope and suggests that new political formations could emerge to combine environmental sustainability and social justice. His concept of an “ecological welfare state” aims to decouple social security systems from economic growth.

At the same time, business associations and unions are warning of creeping deindustrialization in Germany. Industry President Siegfried Russwurm emphasizes that Germany is losing competitiveness, while DIHK President Peter Adrian addresses the danger of relocating production abroad. In talks with the federal government, DGB leader Yasmin Fahimi emphasizes the need for competitive industrial electricity prices, and IG BCE boss Michael Vassiliadis calls for a newly developed industrial policy for Germany and Europe.

Federal Minister of Economics Robert Habeck announced a more active industrial policy to promote location security and ensure a climate-neutral economy. The background is, among other things, the US anti-inflation law, which promotes investments in climate protection and could disadvantage European companies. Adrian compares electricity and gas prices in the USA and Germany and warns of a gradual outflow of industrial production. Slow approval processes and high corporate taxes in Germany are also criticized, while the need for a European Data Act to create data spaces is highlighted.