State of the World from NPR Europe's Biggest Economy is in Trouble
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Feb 19, 2025 Germany's economy, once thriving, now grapples with stagnation due to low investment and excessive bureaucracy. The ongoing war in Ukraine adds to the challenges, complicating the political landscape as elections approach. The decline in solenoid production in Bavaria symbolizes broader economic troubles. With rising job losses and energy supply issues, the nation faces a critical transition from prosperity to recession, prompting urgent discussions on new economic strategies and leadership.
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Bavarian Factory's Decline
- Honor Albert Schultz's factory produces solenoids, but production is down 20% from five years ago.
- He attributes this decline to shifts in globalization, cheaper energy sources disappearing, and changes in military support.
Germany's Vulnerability
- Germany benefited most from globalization, making it vulnerable to its decline.
- This decline has hurt businesses like Schultz's, with no growth and declining profits since 2019.
German Deindustrialization Debate
- German industry has lost jobs since the pandemic and the war in Ukraine.
- This economic struggle is a central issue in the upcoming German election, with debates focused on deindustrialization.