In the posting of February 14 (The New Sick Man of Europe), I pointed out some of the severe challenges facing Germany. China is successfully challenging Germany’s old business model, they face deindustrialization due to the excessive cost of energy as they ship jobs and technologies to China and the U.S. and there is no common front among the captains of industry in Germany.
The article linked below takes us one step closer to realizing the problems that face this traditional powerhouse of Europe. With a projected growth rate of 0.1%, everyday Germans are facing a period of challenges they have not faced in decades. How will they respond? If they begin to seriously cut back on their commitment to “green” energy to become more competitive in the areas of their traditional strength, they could face a major political struggle.
There is no easy answer but as the article says, the clock is ticking.
