The Sound of Economics
How to fix a staggering Germany
Feb 19, 2025
Jens Suedekum, an economics professor, and Niclas Poitiers, a researcher at Bruegel, dive into the challenges facing Germany ahead of the crucial 2025 federal elections. They analyze the stagnation of the German economy since 2019 and the difficulties in adapting economic strategies amidst external shocks. The discussion highlights the political fallout from the Traffic Light Coalition's collapse and critiques the government's focus on issues like heat pumps, arguing for a more robust approach to bolster growth and stability in a volatile global landscape.
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Quick takeaways
- Germany's economy remains stagnant at 2019 GDP levels, demanding urgent reforms and investments to prevent further decline and instability.
- The upcoming federal elections highlight deep political divisions within the coalition, complicating efforts to implement a cohesive economic strategy.
Deep dives
Germany's Economic Challenges
Germany's economy has faced significant struggles over the past few years, with stagnation evident as the GDP remains at 2019 levels. This lack of growth has made Germany a drag on the European economy, impacting demand from other countries. The economic challenges are compounded by a political crisis, as the current coalition struggles to address these issues effectively, raising concerns about the upcoming elections and their implications for economic policy. The situation represents a critical moment for Germany, as the next government will play a pivotal role in determining the country's economic direction.
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