The war in Ukraine and its repercussions, compounded by structural problems such as an ageing population and a lack of investment, spell the end of the boom

The change in the geopolitical order, disrupted by the invasion of Ukraine, has exposed the weaknesses of the German economic model. The German model, points out Wolfgang Münchau in one of his analyses for Eurointelligence, hinges on three ingredients: cost competitiveness, technological leadership in its industry and geopolitical stability, and ‘all of them are gone,’ he adds. On the one hand, the cut-off of Russian gas — which accounted for more than 50% of the gas consumed in Germany — has impacted the electro-intensive industry, forcing businesses like the chemical company Lanxess to restructure their business and close plants.

  • TotallynotJessica@lemmy.world
    2·
    1 year ago

    I agree overall, but for Germany in particular, they have fewer opportunities for renewables than other countries. At the same time, their most plentiful source of home grown energy is coal which is worse in every way to the gas they were getting from Russia. The economy only matters in so far as it serves the people, but it unfortunately matters a lot for people’s well being, especially in the context of global capitalism.

    • library_napper@monyet.cc
      31·
      1 year ago

      Germany has an enormous amount of wind energy, and there is plenty of room for expansion in the North Sea