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| | By 2025. Germany was in a troublesome economic place as a result of (1) former [[leftist]] Chancellor [[Olaf Scholz]] alignment with [[climate change]] policy, radically changing the German [[energy]] base and driving up costs; (2) [[Ukraine aid]]; (3) the financial burden of mass [[African]] and [[Middle East]]ern [[immigration]], and (4) [[Trump tariffs]] that effectively ending the post-[[World War II]] [[Marshall Plan]]. | | By 2025. Germany was in a troublesome economic place as a result of (1) former [[leftist]] Chancellor [[Olaf Scholz]] alignment with [[climate change]] policy, radically changing the German [[energy]] base and driving up costs; (2) [[Ukraine aid]]; (3) the financial burden of mass [[African]] and [[Middle East]]ern [[immigration]], and (4) [[Trump tariffs]] that effectively ending the post-[[World War II]] [[Marshall Plan]]. |
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| − | ===Economic history===
| + | The German Federal Statistical Office confirmed that [[GDP]] contracted by 0.2% 2% in 2024 following a 0.3% decline in 2023. This means Germany's economy is now only 0.3% bigger than it was in 2019. Essentially 5 years of zero growth. Compared to |
| − | {{See also|Economic history of post-World War II Germany}}
| + | the [[European Union]] average growth of 9.5% since 2017 while Germany managed a pathetic 1.6%. |
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| | + | [[Goldman Sachs]] projects Germany will expand by only 0.3% in 2025, compared to 0.8% for the Euro zone and 1.2% for the [[UK]]. [[Industrial]] output in Germany has fallen to just 90% of its 2015 levels by 2024. Meanwhile, [[Poland]], once has surged to 152% of its 2015 industrial output over the same period. According to the German Chamber of Industry and Commerce, |
| | + | 45% of energy intensive companies are now considering production cuts or relocating abroad, up from just 25% in 2022. |
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| | + | Germany's [[automotive]] sector along the backbone of its export economy is in freefall. Car production in Germany fell by more than 25% between 2017 and 2023. German giants like [[Volkswagen]] and [[BMW]] are being out-competed by Chinese manufacturers like BYD and Neo were flooding European markets with cheaper, better [[electric vehicle]]s. |
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| | + | The deliberate severance of [[energy]] ties with [[Russia]] wasn't just about [[Ukraine]]. This was Germany voluntarily destroying the very foundation of its industrial competitiveness. For decades, cheap Russian energy made German manufacturing globally competitive. [[Natural gas]] from Russia didn't just power German factories, it powered the entire German economic model. When Germany chose to cut itself off from the Russian energy source, it committed economic suicide. |
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| | + | After the 2022 gas crisis, Germany's already high energy prices went up further, making German manufacturing uncompetitive virtually overnight. Energy intensive industries, which formed the backbone of German manufacturing, suddenly found themselves unable to compete with manufacturers in countries with cheaper energy. This was a deliberate choice. German [[policymaker]]s knew that cutting off Russian energy would devastate their economy. But they chose to prioritize |
| | + | short-term [[geopolitical]] goals over long-term economic [[sovereignty]]. |
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| | ==History== | | ==History== |