JRL NEWSWATCH: “Germany’s Days as an Industrial Superpower Are Coming to an End” – Bloomberg
“As political paralysis grips Berlin, the energy crisis was the final blow for a growing number of manufacturers”
“… Manufacturing output in Europe’s biggest economy has been trending downward since 2017 … accelerating as competitiveness erodes. … The U.S. is drifting away from Europe and is seeking to compete … for climate investment. China is becoming a bigger rival and is no longer an insatiable buyer of German goods. The final blow for some heavy manufacturers was the end of huge volumes of cheap Russian natural gas. Alongside global volatility, political paralysis in Berlin is intensifying long-standing domestic issues such as [aging] infrastructure, an aging workforce and … red tape. The education system, once a strength, is emblematic of a long-term lack of investment in public services ….
Iterations of German industrial decline vary, including the scaling back of expansion and investment; the shifting of production lines; staff reductions; or permanent closure.