Economic decline in Germany: Industry experts warn of political solution deficits and an energy crisis

Economic decline in Germany: Industry experts warn of political solution deficits and an energy crisis

According to a report by www.merkur.de, Germany has lost its economic prestige in recent years and decades. This is presented in an analysis by the US magazine Bloomberg, which sees Germany's days as an industrial superpower as numbered. This decline is attributed to the energy crisis and the inability of politicians to find adequate solutions.

The gross domestic product (GDP) fell by 0.3 percent in 2023 compared to the previous year. The manufacturing sector in particular recorded a decline of two percent. Volker Treier, head of foreign trade at the Association of German Chambers of Industry and Commerce (DIHK), also expressed pessimistic views on economic development. As a result of the loss of cheap Russian gas, the chemical industry has been severely affected. The president of the Ifo Institute estimates that declining mathematical skills among school leavers could cost Germany around 14 trillion euros in economic output by the end of the century.

The discussion in the government coalition about cutting corporate taxes and the energy crisis is contributing to the downward trend. Economics Minister Christian Lindner is urging the partners in the traffic light coalition to submit initial proposals for a new growth agenda. There is disagreement about how tax cuts should be financed.

Opinions about the government's economic policy are divided. While some political representatives are calling for immediate action to promote growth, the high taxation in Germany is also seen as having a negative impact on the economy.

The country's high taxes are deterring investors and potential new employers, and current economic policies do not appear to be efficient enough to reverse the downward trend. Germany is heading for a difficult economic future if quick and decisive action is not taken. The traffic light coalition faces the challenge of making the country's economy competitive again.