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Germany. Economic problems. “They work too little”

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The German economy has problems due to many years of neglect and errors made at the energy transformation – said an expert from the Eastern Studies Center (OSW) Konrad Popławski. In his opinion, the crisis may weaken the role of Germany in the European Union (EU).

According to the analyst, the deteriorating condition of the German economy is “the effect of many years of neglect, not an accident at work.” He added that due to inefficient infrastructure, which was neglected in the era of savings policy, all industries suffer.

“Germans work too little”

– only the question of what renunciation they are ready for GermanyBecause Many indicators prove that Germany is working too littlethe social system is too generous, and at the same time the state has lost its efficiency, especially in the implementation of large infrastructure programs – explained Popławski.

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He added that “industrial sectors feel the negative effects of mistakes made in connection with energy transformation.”

German economy with problems

In his opinion, the German economy failed to find an as effective solution as nuclear energy.

– as a result, a gas supplier was chosen, which turned out to be completely unbelievable – Russia. This forced the rapid expansion of LNG terminals and bringing the raw material during the highest prices. In turn, the automotive industry was strongly created too “greenhouse conditions”, which eliminated all stimuli to innovation and led to stagnation – emphasized the OSW expert.

Read also: There is a shortage of hands in Germany >>>

German problems and position in the EU

Popławski estimated that the weave of negative factors leads Germany in a terrible direction, making them “a heavy burden for the economic situation in Europe”. This – in his opinion – It will also weaken the political position of Berlin in the EU And it can make Germany a very focused country.

– These are not positive news, because the EU will develop much slower. Medium -term it is a chance to take serious reforms in the EU, the receipt of the community and creating a solid system of supporting innovation from scratch – said the analyst.

Read also: The German economy includes braking >>>

Pre -election promises in Germany

An expert, asked, which pre -election proposals of the main political parties in Germany would be the most favorable for the national economy, replied: “In principle, a mix of these solutions would be favorable to Germany, although I do not know if the proposed changes are not too shallow.”

Chaded (CDU/CSU) proposed a package of economic reforms aimed at achieving an economic growth of 2 percent. GDP. Among them were proposals for tax reform, an increase tax -free amountslimitation of bureaucracy and transformation of civic income.

Social Democrats (SPD), however, they want to reduce income tax and VAT for food, lifting minimum wage and additional incentives to buy electric cars. In turn, an alternative to Germany (AFD) demands radical solutions – smaller bureaucracy, a return to nuclear energy and Germany's exit euro zones.

Popławski, when asked about the biggest challenges in economic policy after the Bundestag election, scheduled for February 23, emphasized that “if Donald Trump fulfills the promises of a significant reduction in energy prices, the EU will not be able to still base his development model at high energy prices” .

– And this poses difficult questions about withdrawing from many aspects of climate policy. Another important challenge concerns how to implement programs announced by the parties, and at the same time increase reinforcement expenses or infrastructure. The answer to the question will be the question of where to cut expenses and what sacrifices German society is ready – noted the OSW expert.

The situation of the German economy

The German economy has been in crisis for a long time. In 2024, it shrunk by 0.2 percent, which means the second year of recession in a row. The main reasons for the negative GDP of Germany last year were the results of the industrial sector, which recorded a 3 % decrease in annual terms, including a significant decrease in the automotive industry.

Production indicators in energy -consuming chemical and metallurgical industries remained at a relatively low level. The Bundesbank (central bank) reduced the forecast for the German economy at 2025 and expects GDP growth at an annual basis of only 0.2 percent.

Source of the main photo: Anamaria Mejia/Shutterstock



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