The enterprise local weather in Germany is at present in free fall and is “on the brink” – what’s going on with it?
From the NoTricksZone
By P Gosselin
Failed socialist-green experiment. Economists warn that the German economy is “on the brink” … of a “further decline”
Hats off: Blackout News
Despite all the previous rosy promises of a flourishing green economy by the socialist-green government under Olaf Scholz and Robert Habeck – and also by the previous CDU-led government under Merkel – the mood among German companies continues to deteriorate sharply.
The German online FAZ reports here that the Ifo business climate index fell to 85.7 points in August 2024, from 87.4 points in the previous month. Pessimism is spreading and deepening.
This is the lowest sentiment in 3 years
“The current economic downturn is particularly evident in the renewed decline in the Ifo business climate index, which has left many economic experts completely baffled. One thing is certain: the economy is in a serious crisis,” reports Blackout News. And: “Nobody can say exactly how far the German economy will fall.”
High energy prices, hostile business environment
The current socialist-green government has messed up a lot of things and now does not know how to proceed.
“The challenges are complex and there is no rapid improvement in sight,” Blackout News continues. “In summary, it can be said that the German economy is currently in a serious crisis.”
Many factors contribute to the pessimistic mood in the economy. First and foremost are high energy prices, which are among the highest in the world – thanks to Germany's botched attempt to switch to green electricity.
War and terrorism burden
In addition, the country's massive regulation is hostile to business. Added to this is the escalating war in Ukraine, which is further depressing the mood.
Another depressing factor is the uncontrolled influx of refugees from countries plagued by terror and war. This has led to a rapid increase in violent crimes, as recently occurred in Solingen. Citizens fear for their safety and have lost confidence in the government's ability and willingness to protect them.
Not only is the mood in the economy declining, but so is trust in the government. Unfortunately, real changes will not occur in the foreseeable future.
Pessimism and fear are sinking in Germany, and there is hardly any hope in sight.
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