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September 14, 2024 - 8:00am
Free-market economies experience boom and bust cycles. The hope is that after every recession there will always be a period of renewed economic growth. Some economists think this business cycle has the regularity of a physical law. But it cannot be taken for granted — certain conditions are required.
In Germany, those conditions are rapidly disintegrating. The country may be witnessing not just a regular economic downturn, but the degrading of the very structures needed for any future recovery. To symbolise this point, this week a bridge in the city of Dresden collapsed just minutes after a tram crossed it, thereby narrowly avoiding a fatal disaster.
Although no one was hurt, this is yet another example of Germany no longer living up to its reputation of being a well-run and efficient country. During this summer’s Euro 2024 football tournament, there were endless examples of Germany’s public transport buckling under the pressure. This is something we may have expected during the 2010 or 2014 World Cups in South Africa and Brazil respectively, but not in Germany in 2024.
Yet the country has been steadily falling behind in rankings measuring international competitiveness, especially due to a deterioration of its infrastructure. A decade ago it was ranked sixth; now it is 24th. According to a study, 20% of value-added activity is in danger of being lost.
KPMG has reported that digital infrastructure is worse than in surrounding countries as streets and bridges need renovations and bureaucracy is overwhelming. Only 58% of surveyed CFOs of foreign corporations in Germany consider Europe’s largest economy to be among the five most stable EU countries. Two years ago, the figure was 80%.
Looming above it all are high energy costs, making life especially hard for energy-intensive industries. A lot has been written about Germany’s suicidal energy policy, but nothing has been as devastating as a recent study showing that Berlin spent €500 billion on the “energy transition” towards renewables and barely has anything to show for it. If the funds had been spent on nuclear energy instead, Germany would have saved money, produced more energy, and decarbonised its electricity grid. Instead, the country wasted billions and — for the first time in 22 years — became a net importer of electricity.
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SubscribeThere are echoes of the 1920’s and early 1930’s in this article. History does repeat fortunately or unfortunately. Let us hope Germany, as it can, takes the vigorous democratic path back to greatness rather than a fascist one. The servile liberals need to listen to the more right wing voices before those further to the right attract a disillusioned populace to repeat the mistake of the past coming up to 100 years ago.
Quite so but all they do is insult anyone on the Right
The sentiment is correct but the fact is the current government is already doing many of the things a dascist government does.
When living in France from 2016 to 2022, was very surprised that the preference was for Italian white goods and electrical appliances as the German ones were so unreliable. Strange decline of a once proud engineering nation.
Of course, the German government fact-checked Trump’s remarks about their energy policy that he made during the debate.
The country may be falling apart, but the government still has time to lie about Trump.
Whilst the failure to fix /replace Hammersmith bridge is a symbol of the UKs
And in the UK Millipede is determined to replicate the same disastrous energy policy.
We are doomed I tell you!
Can they blame the RAF?
Well the UK can’t blame the Luftwaffe for the horrors inflicted on many British towns…that was inflicted by “town planners”…
More to the point: Which politicians gave which company the contract to build the bridge?
Why is everyone surprised about this? It is degrowth. Advocated by the uppercrust of society. Sir Keir said it himself when asked: Davos or Westminster? Davos of course, was his reply. Why is this news? It is the natural course of events. It is like the sun going up and then going down. Not newsworthy.
Western Europe is beginning to look like series of failed states..cç
When you replace gov’t control for private initiative, you destroy the incentives to be constructive.
Rot is the inevitable result.
Thanks for the reactionary perspective.
The part that collapsed was due for renovation next year.
Or the year after…or the year after, no doubt…such is bureaucracy…
Yes, now what i would like from umherd is some analysis of the implications for the euro. Why isnt the euro falling ( quicker) relative to the doller given that it is clearly stagnating . Where is the debt crises ?
Coming soon to the United Kingdom and the United States.
But they are green and with open immigration, so all is good.