Germany, Europe’s largest economy, is struggling with stagnation and uncertainty. The country needs a new business model, moving away from cheap natural gas from Russia and lucrative exports to China, which has fueled its industrial powerhouse to post-pandemic straggler.
Bureaucracy, skill shortages, slow technology deployment, and lack of clear direction are among the factors that have hindered Germany’s growth. Rising competition from China and high energy prices due to Russia’s war in Ukraine have further exacerbated the issues.
Business leaders, including Klaus Geissdoerfer, CEO of industrial fan manufacturer EBM-Papst, urge a more company- and enterprise-friendly politics to boost economic growth. They argue that Germany’s excessive bureaucracy is stifling innovation and hindered their ability to implement measures effectively.
To overcome these challenges, the new government must adopt green and digital technologies, like AI-driven cooling systems for data centers. This could help Germany compete with countries like China and the US, where energy costs are significantly lower.
The economic woes have led to complacency and depression among German companies and citizens. Economists, such as Marcel Fratzscher, president of the German Institute for Economic Research, argue that the government needs to loosen constitutional limits on debt to increase public spending on infrastructure and education.
A more agile and adaptive approach is necessary to drive economic growth and reform Germany’s economy.
Source: https://apnews.com/article/germany-election-government-economy-4248f25f322cb8bef2aebfdeb7664ae7