Germany's industrial production has fallen to 2005 levels, the economic locomotive of Europe has stalled and turned into a broken vehicle, it's all in vain.
Looking back now, German Chancellor Merkel was very high-level. Those who study physics know how to objectively view economic matters, and her decisions were not so unreliable. She ruled for as long as 16 years (2005-2021). The peak of Germany's economy was between 2017-2018, and it was the economic locomotive of Europe. German companies took advantage of the EU's open internal market and dominated globally.
However, the political atmosphere in Germany has been very wrong. A liberal arts mindset has taken over. These people think that running an economy is easy, they prioritize ideology and can mess around. They shut down coal power plants and dismantle nuclear power stations. Germany's industrial electricity prices have risen to the highest in the world. In 2024, the power generation volume fell by 24% compared to the peak in 2017. Is this something a normal person would do? There is a serious lack of electricity, but the Green Party's economic minister, Riesch, still pushes for a "green hydrogen strategy". However, the premise of hydrogen production is "excess electricity", which shows no economic common sense. There are many abnormal actions against industrialization, rejecting cheap energy and goods supply, insisting on politically correct but expensive options instead.
The once famous "Industry 4.0" has become empty talk. High energy prices and deindustrialization, the slogan of industrial upgrading is just detached from reality. German politicians have turned environmentalism into a religion, sacrificing economic rationality for values. Politicians don't care about German interests, only about American and Israeli interests, actively sending money to Ukraine. It also messed up its diplomatic relations with China, while German companies quietly rooted themselves in China.
After being in power for too long, there are many things that surprise people. For example, Trumpf, a laser and machine tool manufacturer, well-known in the industry, which needs lithography machines, has now suffered losses for the first time since the global financial crisis. The company is located in Ditzingen, a city in the wealthy Baden-Württemberg state. Local business tax was the main source of income, but it has dropped by 80% since 2023, leading to severe budget deficits.
Facing U.S. tariffs and the rise of Chinese competitiveness, Germany's response is not just helpless, but rather foolish. Facing challenges, practical efforts and transformation are needed. However, the German government is heavily promoting so-called "values", straying further and further on the wrong path. Germany's industrial production has fallen to 2005 levels, which is unimaginable, and may not come back. Dirk Pfeiffer, a partner at Porsche Consulting, said, "The crisis in German engineering is getting worse, and this downturn is not cyclical; it will not disappear in the next upturn."
Original: www.toutiao.com/article/1848648607539207/
Statement: This article represents the personal views of the author.