My newest Letter from Berlin paints a picture of a Germany full of contradictions. Under Chancellor Friedrich Merz, the country appears more assertive and influential on the international stage than it has in years. At home, however, it continues to struggle with economic stagnation, reform paralysis, and growing political discontent. While Merz is emerging as a leading … [Read more...] about Merz asserts himself. But does he have a game plan?
Germany
Germany in Crisis
On the day Donald Trump was inaugurated for a second term, the main German stock index DAX briefly rose over 21,000 for the first time ever, suggesting that a large share of foreign investors—some estimates guessed around 70 percent—supported Trump’s “Make America Great Again” triumphant return as the fortyseventh U.S. president. This contrasts with the prevailing fear in … [Read more...] about Germany in Crisis
Germany’s Security Failure
The largest European military donor is Germany, with €17.7 billion since February 2022, of which €9.4 billion has been allocated. The negative standing of the present German government coalition of Social Democrats, Greens, and Liberals doesn’t come as a surprise. The German chancellor’s historic 2022 Zeitenwende speech and the bitter reality that it has not had much impact … [Read more...] about Germany’s Security Failure
Deutschland Debacle
Germany’s traffic-light coalition of Social Democrats, Greens, and Liberals is unable to escape crisis mode. The coalition’s top leaders, Chancellor Olaf Scholz of the Social Democrats, Vice Chancellor and economy and climate minister Robert Habeck of the Greens, and finance minister Christian Lindner of the Free Democratic Party, have been facing one mess after another. … [Read more...] about Deutschland Debacle
Dragging Down Europe
The key message from the International Monetary Fund annual meeting in October 2022 was that Germany would fall into recession in 2023 with the worst ecomomic growth among the major countries. This did not come as a surprise. It showed how difficult it would be for the world’s leading export country to preserve its international competitiveness without access to cheap Russian … [Read more...] about Dragging Down Europe