Germany’s economy is in trouble. The government’s collapse and Trump’s return bring more risk
1 month, 2 weeks ago

Germany’s economy is in trouble. The government’s collapse and Trump’s return bring more risk

Associated Press  

WARSAW, Poland — The collapse of Germany’s governing coalition and President-elect Donald Trump’s imminent return to the White House are creating new risks for the European Union’s biggest economy, already in a troubling decline. “At the European level, political instability in Germany is not good news,’' Antonio Villafranca, vice president of the Italian think tank ISPI, said, noting that a strong Franco-German alliance at the center of the European Union provided an important counterweight during Trump’s first presidency. “It doesn’t require a lot of imagination to see U.S. tariffs on European cars sending the German automotive industry into deeper problems.” Other analysts say Trump’s embrace of tariffs might actually benefit Germany’s automobile industry, whose woes have been one of the reasons for the weakening economy. “Trump can save the German automotive sector” by keeping the tariffs on Chinese EVs, said Daniel Gros, director of the Institute for European Policymaking at Milan’s Bocconi University.

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History of this topic

From far-right gains to the economy: What’s at stake in Germany’s election?
1 month ago

From far-right gains to the economy: What’s at stake in Germany’s election?

Al Jazeera  

Germans will head to the polls early next year after the coalition led by Chancellor Olaf Scholz collapsed. Germany’s ruling “traffic light” coalition, formed by the Social Democratic Party, Greens and Free Democrats collapsed on November 6, after Chancellor Olaf Scholz dismissed his finance minister, FDP leader Christian Lindner. The final break came during preparations for the 2025 budget, with …

Germany’s government on brink of collapse: What’s next for Europe’s economic powerhouse?
1 month, 2 weeks ago

Germany’s government on brink of collapse: What’s next for Europe’s economic powerhouse?

Firstpost  

Germany is facing a political crisis after Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner, dissolving the ruling coalition amid economic woes and growing dissatisfaction with mainstream politics. Scholz’s Social Democrats and the Greens now attempt to form a minority government while navigating issues like budget deficits, military spending, and Ukraine support German Chancellor Olaf Scholz attends a media briefing …

Germany heads for early elections as Chancellor Scholz’s coalition collapses
Top News
1 month, 2 weeks ago

Germany heads for early elections as Chancellor Scholz’s coalition collapses

The Hindu  

Germany entered a major political crisis on Wednesday with the collapse of Chancellor Olaf Scholz's ruling coalition likely paving the way for early elections next year. Mr. Scholz said he would seek a vote of confidence by January 15 so that MPs "can decide whether to clear the way for early elections" which could be held by late March — …

Goldman Sachs slashes European growth forecasts on Trump win
1 month, 2 weeks ago

Goldman Sachs slashes European growth forecasts on Trump win

CNN  

London CNN — President-elect Donald Trump’s proposed protectionist policies, including hefty tariffs, will hurt Europe’s economic standing — leaving crisis-hit Germany particularly vulnerable, Goldman Sachs predicts. Following Trump’s re-election, the investment bank cut its growth forecasts for the region, predicting fresh trade tensions with the United States, pressure on Europe to increase defense spending and a hit to business confidence …

Germany’s normally stable government has collapsed. Here’s why
1 month, 2 weeks ago

Germany’s normally stable government has collapsed. Here’s why

CNN  

CNN — Germany’s governing coalition has collapsed after disagreements over the country’s weak economy led Chancellor Olaf Scholz to sack his finance minister. Christian Lindner’s dismissal prompted him to withdraw his Free Democrats Party from a coalition with Scholz’s Social Democratic Party, leaving Scholz in a minority government with the Green Party. The chancellor told reporters Wednesday night that Lindners’ …

Germany to see snap polls as Olaf Scholz's coalition government collapses
1 month, 2 weeks ago

Germany to see snap polls as Olaf Scholz's coalition government collapses

India Today  

Germany's ruling coalition collapsed on Wednesday as Chancellor Olaf Scholz sacked his finance minister and paved the way for a snap election, triggering political chaos in Europe's largest economy hours after Donald Trump won the US presidential election. The collapse of Scholz's three-way alliance caps months of wrangling over budget policy and Germany's economic direction, with the government's popularity sinking …

Germany's ruling coalition collapses, Scholz govt in trouble; trust vote likely in January
Top News
1 month, 2 weeks ago

Germany's ruling coalition collapses, Scholz govt in trouble; trust vote likely in January

Firstpost  

German Chancellor Scholz sacked his finance minister, Christian Lindner, on Wednesday. German Chancellor Olaf Scholz fired his rebellious Finance Minister Christian Lindner on Wednesday, effectively ending the nation’s three-party coalition government. The decision followed weeks of intense disputes within the coalition, comprised of Scholz’s Social Democrats, Lindner’s Free Democrats, and the Greens. Scholz later held a press conference saying he …

Germany's quarrelsome government meets in last-minute effort to find solution for its ailing economy
1 month, 2 weeks ago

Germany's quarrelsome government meets in last-minute effort to find solution for its ailing economy

The Independent  

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Germany's economy isn't growing. But its quarrelsome government can't agree on a way forward
1 month, 3 weeks ago

Germany's economy isn't growing. But its quarrelsome government can't agree on a way forward

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Scholz’s center-left Social Democrats, Vice …

Germany: Europe’s biggest economy is in crisis. Just look at Volkswagen
1 month, 3 weeks ago

Germany: Europe’s biggest economy is in crisis. Just look at Volkswagen

CNN  

London CNN — Germany narrowly escaped a recession in the third quarter, official data showed Wednesday, offering some relief to Europe’s biggest economy as its fortunes falter. “The biggest worry is currently the big pessimism in Germany,” said Marcel Fratzcher, president of the German Institute for Economic Research in Berlin. “We are not experiencing a crisis in the automotive industry, …

How Germany blew up its economy
4 months ago

How Germany blew up its economy

The Telegraph  

This strong backbone of businesses powered export-led growth, enabled in part by a political willingness to trade heavily with China and to rely on cheap Russian gas. “China’s slowdown has led to a decline in demand for the sort of goods Germany is very good at exporting,” says Chris Williamson, chief business economist at S&P Global. “We saw a slump …

Germany braced for Europe’s next debt crunch
5 months, 2 weeks ago

Germany braced for Europe’s next debt crunch

The Telegraph  

It means the German government is simultaneously in a very strong financial position but dangerously constrained on what it can do with its money, says Holger Schmieding, chief economist at Berenberg bank. “Yet we are stuck with a debt brake that seemed to make sense 10 or 15 years ago, but does not make sense now.” While Germany has prided …

German government averts crisis with budget agreement for Europe’s largest economy
5 months, 2 weeks ago

German government averts crisis with budget agreement for Europe’s largest economy

Associated Press  

BERLIN — The German government said Friday it has reached agreement on the budget for 2025 and a stimulus package for Europe’s largest economy, easing a monthslong squabble that threatened to upend Chancellor Olaf Scholz’s center-left coalition. By balancing security, social cohesion and economic growth, Scholz said the budget was designed to reassure citizens unsettled by the war in Ukraine, …

Bankruptcies in Germany rise sharply
6 months, 1 week ago

Bankruptcies in Germany rise sharply

China Daily  

People visit a shopping mall in Berlin, Germany, on Feb 1, 2023. Germany has experienced an increase in corporate bankruptcies as 5,209 companies filed for insolvency in the first quarter, according to the Federal Statistical Office, Destatis. The first three months of this year saw a 26.5-percent increase in bankruptcies compared to the same period last year and an 11.2-percent …

Gloom settles over Germany’s economy, with businesses downbeat about the coming months
10 months ago

Gloom settles over Germany’s economy, with businesses downbeat about the coming months

Associated Press  

FRANKFURT, Germany — Germany’s businesses remain mired in pessimism, a key survey showed Friday, as Europe’s largest economy struggles with shortages of skilled labor, slower global trade, high interest rates and political squabbling. The closely watched Ifo institute survey of business sentiment rose only slightly to 85.5 points in February from 85.2 points in January due to “slightly less pessimistic …

Germany says Europe’s largest economy is in ‘troubled waters’ and cuts its growth forecast
10 months ago

Germany says Europe’s largest economy is in ‘troubled waters’ and cuts its growth forecast

Associated Press  

FRANKFURT, Germany — The German government said Europe’s largest economy was in “troubled waters” and slashed its growth forecast for this year as it struggles with a lack of skilled labor, excessive bureaucracy, high interest rates and lagging investment in new projects — while a relatively modest set of tax breaks for business remains blocked in the legislature. “The economy …

Europe’s biggest economy shrank last year as Germany struggles with multiple crises
11 months, 1 week ago

Europe’s biggest economy shrank last year as Germany struggles with multiple crises

Associated Press  

FRANKFURT, Germany — Germany’s economy shrank 0.3% last year as Europe’s former powerhouse struggled with more expensive energy, higher interest rates, lack of skilled labor and a homegrown budget crisis. The International Monetary Fund expected Germany to be the worst-performing major developed economy last year, a major turnaround from its place as a model for how to expand when other …

Germany’s economy seen shrinking again in the current quarter as business confidence declines
1 year ago

Germany’s economy seen shrinking again in the current quarter as business confidence declines

Associated Press  

BERLIN — Germany’s economy is likely to shrink again slightly in the current fourth quarter, the country’s central bank said Monday, while a survey showed business confidence retreating unexpectedly. The Bundesbank said in its monthly report that “real gross domestic product in Germany is likely to decline again slightly in the fourth quarter of 2023” as a result of weak …

Germany’s Scholz confident of resolving budget crisis, says no dismantling of the welfare state
1 year ago

Germany’s Scholz confident of resolving budget crisis, says no dismantling of the welfare state

Associated Press  

BERLIN — German Chancellor Olaf Scholz said Saturday he is confident that his troubled government will find a good solution to a budget crisis triggered by a court ruling last month, and promised his center-left party there will be no dismantling of the country’s welfare state. Leaders of Scholz’s three-party coalition have been wrangling over money since Germany’s highest court …

The worst-performing major economy also faces a budget crisis. Germany’s leader vows fixes, but how?
1 year ago

The worst-performing major economy also faces a budget crisis. Germany’s leader vows fixes, but how?

Associated Press  

FRANKFURT, Germany — German Chancellor Olaf Scholz vowed Tuesday that his government will work “as fast as possible” to solve a budget crisis, but he offered few details on how he would achieve his goals of promoting clean energy and modernizing the struggling economy after a court decision struck down billions in planned spending. Scholz and his quarrelsome governing coalition …

Germany is having a budget crisis. With the economy struggling, it's not the best time
1 year ago

Germany is having a budget crisis. With the economy struggling, it's not the best time

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy With its economy struggling, Germany …

Germany, now the world’s worst-performing major economy, grapples with a budget crisis
1 year ago

Germany, now the world’s worst-performing major economy, grapples with a budget crisis

LA Times  

German Chancellor Olaf Scholz delivers a speech on the government’s budget crisis at the Parliament in Berlin. Chancellor Olaf Scholz vowed recently that his government would work “as fast as possible” to lay out how to solve Germany’s budget crisis, but he offered few details on how he would achieve his goals of promoting clean energy after a court decision …

Germany’s leader vows to fix a spending crisis that’s worsening gloom in the struggling economy
1 year ago

Germany’s leader vows to fix a spending crisis that’s worsening gloom in the struggling economy

Associated Press  

FRANKFURT, Germany — German Chancellor Olaf Scholz on Friday promised quick action to fix a budget crisis after a court decision blew a large hole in the almost-finished plan for next year and threatened to disrupt spending on efforts to fight climate change and cushion the impact of high energy prices caused by Russia’s invasion of Ukraine. “Those are “justifiable …

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast
1 year, 1 month ago

Economy has lost momentum during a tough year, EU commission says and warns of risk from Mideast

Associated Press  

FRANKFURT, Germany — The European Union’s executive commission lowered growth its expectations for this year and next, saying the economy “has lost momentum” as inflation discourages consumers and higher interest rates deter borrowing for purchases and investment. it could create spillovers on energy prices.” While growth remains anemic, unemployment remains near record lows and growth should improve as inflation falls …

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy
1 year, 1 month ago

Europe’s central bank halts rate hikes as war in the Middle East casts a shadow over the economy

Associated Press  

FRANKFURT, Germany — The European Central Bank left interest rates unchanged Thursday for the first time in over a year as the Israel-Hamas war spreads even more gloom over already downbeat prospects for Europe’s economy. She reiterated that high rates would help drive back inflation to the bank’s goal of 2% if “maintained for a sufficiently long duration.” She would …

Germany risks becoming sick man of Europe, Deutsche Bank chief warns
1 year, 3 months ago

Germany risks becoming sick man of Europe, Deutsche Bank chief warns

The Telegraph  

Germany will become the sick man of Europe if it fails to reinvent itself, the chief executive of Deutsche Bank, the country’s largest lender, has warned. Christian Sewing told an audience in Frankfurt that the continent’s largest economy was becoming complacent after more than a decade of strong growth before the pandemic. Mr Sewing said: “We are not the sick …

German economy sinking in recession in 2023, predicts European Commission
1 year, 3 months ago

German economy sinking in recession in 2023, predicts European Commission

Live Mint  

Bearing the brunt of high inflation driven by factors like Russia-Ukraine crisis, German economy is expected to contract in 2023, predicted European Commission on Monday. The recent cut in forecast has come at a time when Euro's biggest economy is facing high inflation and the spill over effect of Russia-Ukraine war. Euro zone expected to grow slower, says EC The …

Why Germany is getting the 'sick man of Europe' label again
1 year, 3 months ago

Why Germany is getting the 'sick man of Europe' label again

Firstpost  

Germany has experienced two consecutive quarters of contraction – which fulfills the technical definition of a recession. Carsten Brzeski, global head of macro at ING, said: “Both the short-term and the longer-term outlook for Germany looks anything but rosy.” Weak purchasing power, thinned-out industrial order books, a slowdown in the Chinese economy and the impact of the most aggressive monetary …

German central bank sees the economy stagnating again in the 3rd quarter
1 year, 4 months ago

German central bank sees the economy stagnating again in the 3rd quarter

Associated Press  

BERLIN — Germany’s central bank anticipates that the country’s economy, Europe’s biggest, will be more or less stagnant again in the current quarter — adding to a string of weak performances. German gross domestic product stagnated in the second quarter after declining in both of the two previous quarters as the country struggled with high energy prices, rising borrowing costs …

Germany used to be the world’s export powerhouse. Now, it’s not growing. What happened?
1 year, 4 months ago

Germany used to be the world’s export powerhouse. Now, it’s not growing. What happened?

Associated Press  

FRANKFURT, Germany — The German economy is still failing to grow, figures showed Friday, as the country that should be the industrial powerhouse for all of Europe struggles with high energy prices, rising borrowing costs and a lagging rebound from key trading partner China. It comes after the International Monetary Fund forecast this week that Germany would be the globe’s …

Germany used to be the world's export powerhouse. Now, it's not growing. What happened?
1 year, 4 months ago

Germany used to be the world's export powerhouse. Now, it's not growing. What happened?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The German economy is still …

Germany economy shrinks in first quarter, signaling one definition of recession
1 year, 6 months ago

Germany economy shrinks in first quarter, signaling one definition of recession

Associated Press  

BERLIN — The German economy shrank unexpectedly in the first three months of this year, marking the second quarter of contraction that is one definition of recession. Two consecutive quarters of contraction is a common definition of recession, though economists on the euro area business cycle dating committee use a broader set of data, including employment figures. Employment in the …

Europe's largest economy succumbs, Germany declares recession
1 year, 6 months ago

Europe's largest economy succumbs, Germany declares recession

Firstpost  

Germany slipped into recession after its economy shrank in the first three months of 2023, marking the second quarter of contraction, country’s statistical office said on Thursday. The gross domestic product of Europe’s largest economy declined by 0.3 per cent in the period from January to March. Initial estimates had indicated that the GDP would remain stagnant at zero growth, …

Germany's GDP shrinks by 0.3% in first quarter to put Europe's biggest economy into recession
1 year, 6 months ago

Germany's GDP shrinks by 0.3% in first quarter to put Europe's biggest economy into recession

The Hindu  

New figures show the German economy suffered an unexpected dip in the first quarter of this year, putting the country formally into recession. Data released May 25 by the Federal Statistical Office shows Germany's gross domestic product, or GDP, down by 0.3% in the period from January to March. The figures are a blow to the German Government, which last …

Germany sees brighter outlook for Europe’s largest economy
1 year, 10 months ago

Germany sees brighter outlook for Europe’s largest economy

Associated Press  

FRANKFURT, Germany — The German government on Wednesday said it expects to eke out economic growth this year instead of a decline as Europe’s largest economy manages its energy divorce from Russia and shells out support for consumers and businesses hit by higher energy costs. The improved outlook “didn’t fall from heaven — we accomplished it, this country accomplished it.” …

Germany will not fall into recession, insists Scholz
1 year, 11 months ago

Germany will not fall into recession, insists Scholz

The Telegraph  

Germany will avoid a recession this year, Chancellor Olaf Scholz has insisted, despite the energy crisis which has ravaged its economy. Mr Scholz said that new liquefied natural gas terminals on the Baltic and North Sea coasts would help cushion the blow from the energy crisis on Germany’s crucial manufacturing sector. “I’m absolutely convinced that this will not happen – …

German economy to shrink in 2023, government advisers expect
2 years, 1 month ago

German economy to shrink in 2023, government advisers expect

Associated Press  

BERLIN — The German government’s panel of independent economic advisers forecast Wednesday that Europe’s biggest economy will shrink by 0.2% next year. But a weak winter, with gross domestic product declining in the last months of the year and in the first three months of next year, is still widely expected. The advisers’ forecast of 1.7% growth this year and …

German government: Economy to shrink in 2023 as war bites
2 years, 2 months ago

German government: Economy to shrink in 2023 as war bites

Associated Press  

BERLIN — The German government on Wednesday slashed its growth forecast for this year and predicted that Europe’s biggest economy would shrink in 2023 as it deals with the fallout from Russia’s war in Ukraine, including Moscow cutting off natural gas supplies. Habeck said that despite the grim growth projections, employment would likely remain “robust.” Russian imports once accounted for …

Europe's largest economy Germany will fall into recession in 2023: OCED
2 years, 2 months ago

Europe's largest economy Germany will fall into recession in 2023: OCED

Firstpost  

Germany is facing soaring inflation, particularly in energy prices, after Russia cut gas supplies through the Nord Stream pipeline as tensions mount over the Ukraine war New Delhi: Europe’s largest economy Germany will fall into recession in 2023, the Organisation for Economic Co-operation and Development said on Monday. “Pessimism regarding the coming months has grown decidedly.” Energy prices spike as …

Germany: Recession clouds gather in Europe's largest economy
2 years, 2 months ago

Germany: Recession clouds gather in Europe's largest economy

Firstpost  

Germany’s key future indicator, the IFO survey of business confidence, pointed down for the fourth month in a row as high inflation fed by astronomical natural gas prices undermines consumer pricing power and imposes heavy costs on businesses Frankfurt: Europe’s largest economy is sending recession signals. Germany’s key future indicator, the IFO survey of business confidence, pointed down for the …

Germany slumps into second recession, says Bundesbank
2 years, 10 months ago

Germany slumps into second recession, says Bundesbank

The Telegraph  

Officials warned that labour shortages were “markedly” blighting activity across the economy. The Bundesbank’s monthly report said: “In contrast to previous waves of the pandemic, it’s not just the services sector that’s hit by restrictions and adapted behaviour.” However, despite the gloomy assessment, recent business surveys suggest German business activity picked up sharply this month. Phil Smith from IHS Markit …

Omicron leaves Germany on brink of recession as growth dips
2 years, 11 months ago

Omicron leaves Germany on brink of recession as growth dips

Associated Press  

FRANKFURT, Germany — The risk of recession is looming for Germany after Europe’s biggest economy shrank at the end of 2021 and as it faces a bumpy start to this year, with the rapid spread of COVID-19’s omicron variant deterring people from shopping and travel and supply bottlenecks holding back manufacturers. Forecasts are also shaky for the first three months …

German economy still smaller than pre-pandemic size after omicron reversal
2 years, 11 months ago

German economy still smaller than pre-pandemic size after omicron reversal

The Telegraph  

Germany’s economy went into reverse at the end of 2021, as omicron combined with supply shortages left the industrial powerhouse further away from returning to its pre-Covid size. “No other eurozone country suffered as much as the German economy amid a series of supply chain frictions,” he said. “Industrial production has basically stagnated since spring last year, despite richly filled …

Germany is on the brink of a winter recession
3 years ago

Germany is on the brink of a winter recession

CNN  

London CNN Business — Germany is teetering on the brink of recession this winter as supply bottlenecks and a wave of new coronavirus cases hobble the economy. “Ongoing supply bottlenecks and the fourth wave of the coronavirus are noticeably slowing down the German economy,” Timo Wollmershäuser, head of forecasts at Ifo, said in a statement. “The strong post-pandemic recovery that …

Merkel's successor inherits slowing German economy
3 years, 1 month ago

Merkel's successor inherits slowing German economy

The Telegraph  

Germany’s new chancellor will inherit a far weaker than expected recovery as the aftermath of the pandemic plays havoc with the country’s manufacturers, new forecasts show. The downbeat news comes amid ongoing coalition talks between the Social Democrats, the Greens and Free Democrats to succeed Angela Merkel’s “grand coalition” following last month’s election. The economy minister, Peter Altmaier, blamed the …

Tightening German election spells end to Merkel’s economic legacy
3 years, 4 months ago

Tightening German election spells end to Merkel’s economic legacy

The Telegraph  

Germany’s tightening election race threatens to rip up Angela Merkel’s economic legacy as finance minister Olaf Scholz’s higher spending Social Democrat party gains ground. Economists warned the recent dip in the polls for Ms Merkel’s CDU party now puts Germany on course for a three-party coalition that is likely to relax the country’s prudent stance on spending. “There is a …

Germany’s economy: Pandemic recession wasn’t as bad as 2009
3 years, 11 months ago

Germany’s economy: Pandemic recession wasn’t as bad as 2009

CNN  

London CNN Business — Germany’s economy held up better in the pandemic than it did during the global financial crisis, despite a second wave of lockdowns in the fourth quarter and the reversal of more than a decade’s growth in employment and trade. “Germany’s outperformance reflects its comparatively light lockdown during the first wave of Covid-19, low share of tourism …

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