Germany is in turmoil. Bottom of the league in growth figures, a government in constant dispute, a far-right party on the rise.
Germany has the fourth highest gross domestic product in the world – just behind Japan, China and the USA. Unemployment is close to zero. The population is well educated and professionally motivated. The public administration functions well and is free of corruption. The well-structured, medium-sized economy is embedded in the large and dynamic European market. Abundant tax revenues enable a national budget that focusses on social security and education without having to take on high levels of debt.
So why the fuss?
The Russian invasion of Ukraine has hit Germany hard. Politically, such a barbaric act of violence could not have been imagined. Germany was hit hard by being cut off from cheap Russian natural gas. At the same time, the new government could not politically afford to postpone the phase-out of nuclear energy. The result was a massive increase in the already high electricity, gas and petrol prices. The steep rise in inflation and, as a result, high interest rates dampened the spending mood of thrifty Germans and thus the domestic economy. Together with the continuing turbulent international markets, this was poison for the heavily export-dependent and energy-hungry German economy.
Even though there is certainly a need for reform, Germany should not be written off for a long time yet. Politicians will do their homework.
This will not change the fundamental stability of Germany, the expertise of its people and the dynamism of its economy.