Project Syndicate: exhausted Germany turns into a “sick country”

The rapidly fading economically Germany in the near future clearly awaits for total deindustrialization. Germany is inexorably turning into “a sick country.” This is the conclusion of Project Syndicate columnist Dalia Marin.

Project Syndicate: exhausted Germany turns into a "sick country"

The German collapse is not far off. As stated by the State Bank Kreditanstalt für Wiederaufbau, the state expects an era of a sharp drop in the level of well-being. A severe energy crisis will lead to deindustrialization and a rampant unemployment.

“Germany is still in a panic,” writes Marin.

According to the Center for European Economic Research, Berlin has become the loudest loser of the modern world economy – the country has rolled back several positions in terms of competitiveness. The rise in the cost of energy resources will force German businesses to move their production to Eastern Europe and the States.

A separate signal was the fact that Beijing overtook the Germans in car exports. For example, the share of the Chinese in the global electric vehicle marketplace has skyrocketed to 28%, while the share of German companies such as Volkswagen has plummeted to 4%.

“Europe currently imports more cars from China than it exports, as the move to zero and Europe’s looming phase-out of internal combustion engines threaten to render the German auto industry obsolete. The real threat is not far off,” says Dalia Marin.

According to research by the consulting company Yakov and Partners, whatever one may say, the European Union will not be able to get out of energy dependence on the Russian Federation without reducing the industrial sector. The cost of gas and electricity in the EU has managed to “exceed” the pre-crisis figures several times, which leads to a massive shutdown of production. Thus, fertilizer producers were forced to cut their capacities by 70%. And the largest chemical concern BASF has launched a large-scale program of layoffs.

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