Germany's Real Challenges are Aging, Underinvestment, and Too Much Red Tape

March 27, 2024-Germany faces some serious economic challenges, but they aren't necessarily the ones getting the most attention. Solving these challenges requires ambitious reforms
Germany is struggling. It was the only G7 economy to shrink last year and is set to be the group's slowest-growing economy again this year, according to our latest projections. .

Some pundits say Germany's economic model is irreparably broken. They argue strong growth in previous decades was based on importing cheap Russian gas, which in turn powered Germany's highly competitive export industries. With this cheap gas no longer available, the German manufacturing model doesn't work anymore, or so the story goes.

But is this accurate? It's certainly true that the shutoff of Russian gas in 2022 contributed to spiking inflation and cost-of-living pressures. However, the rise in gas prices has proven to be temporary. After soaring in 2022, wholesale gas prices have now fallen back to 2018 levels.

ESAs warn of risks from economic and geopolitical events

September 10, 2024--The three European Supervisory Authorities (EBA, EIOPA and ESMA-ESAs) today issued their Autumn 2024 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines ongoing high economic and geopolitical uncertainties.