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?
Donald Trump
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
Europe’s Post-Trump Sigh of Relief
When the major news networks and the Associated Press declared Joe Biden the winner of the 2020 presidential elections on November 7, there was a big sigh of relief all over Europe, especially in Germany. But when U.S. President Donald Trump claimed victory in the days following the election and declared that he would ask the U.S. Supreme Court to stop the counting of postal … [Read more...] about Europe’s Post-Trump Sigh of Relief
Germany on the Firing Line
Ever since U.S. President Donald Trump started a global trade war, attacking high German current account surpluses and threatening penalty tariffs on German cars, Germany’s economic model as the basis for the extraordinarily strong position of German quality brands on world markets moves further into the firing line. Faced with the threat of a 35 percent tariff on imported cars … [Read more...] about Germany on the Firing Line
Germany’s China Dilemma
At a recent weekend, the leaders of the present German coalition government, still headed by Chancellor Angela Merkel, gathered in Berlin to discuss why they have lost millions of voters in recent elections. Merkel’s party union is still struggling with the refugee open border disaster, while the Social Democrats proposed a fundamental overhaul of Germany’s social state, … [Read more...] about Germany’s China Dilemma