Is the crisis of the German economy a threat to the whole of Europe: foreign media are looking for an answer
When Germany was the economic engine of Europe, its model commanded respect and admiration. However, the situation has changed now. Germany’s economy grew by just 0.1% in the third quarter of 2024, narrowly avoiding recession. This causes deep concern not only in the country itself, but also among neighboring states, because the fate of the German economy is closely related to the stability of the whole of Europe.
A new report from the European Central Bank on financial stability says that instability is growing amid geopolitical tensions, economic uncertainty and escalating trade conflicts. This creates conditions for even greater vulnerability of European economies. The mass media of different countries actively analyze and comment on the situation in Germany, emphasizing the possible consequences for the whole of Europe.
The Economist – Great Britain. The London weekly The Economist writes the following:
“We have heard these cries before. The German economy, and above all small and medium-sized businesses, bet on progressive innovation, as a result of which it was unprepared for technological upheavals, such as the appearance of electric cars. The close ties between business, banks and politicians created an environment , in which complacency and resistance to reforms flourished.
A dogmatic reluctance to change the budget rules has led to rusted bridges, outdated schools and trains that are perpetually late. Growth in foreign markets for a time provided Germany with a generous inflow of funds (and tax revenues), but this export model of the economy made Germany vulnerable to the winds of globalization, which have become noticeably more frosty recently.”
Naftemporiki – Greece. The Athenian Naftemporiki sees the reason for what is happening on the other side of the Atlantic Ocean:
“It is no coincidence that the crisis of the current government of Germany erupted on the very day when it became clear that Trump had won the US elections. Trump’s economic program includes raising tariffs on a number of European goods in order to stimulate economic growth in the United States. It is also planned to increase tariffs on goods that the US can produce itself.
According to experts, in the case of the introduction of tariffs, the GDP of the Eurozone will decrease by one percent. Trump has presented a number of parallel challenges to Europe, but they all boil down to the same goal: to at least double the growth rate of the American economy. And he also forces European states to increase defense spending.”
Newsweek Polska – Poland. The Warsaw weekly Newsweek Polska reflects that a “weak Germany” also means a weak European Union. And this creates two big problems for the bloc as a whole. Almost two-thirds of German imports come from other European countries, and Germany accounts for a quarter of the EU’s GDP.
If the situation in Germany worsens, the whole continent is threatened with ten years of stagnation. However, that’s not all. Elon Musk recently let out a loud “Wow!” – when he found out how much money Germany allocates for Europe. It is the sponsor of the entire European project, and no one can replace the Germans in this role!”
