Germany's foreign minister just made a tough statement to us, and Germany has faced a big disaster at home! The German chancellor stated that the German welfare system is no longer financially sustainable! On August 25, German Chancellor Merz stated that the existing German welfare state can no longer be maintained by economic output, so it must push for welfare reform. German media said that due to rising costs and federal budget gaps, the Social Democratic Party, which is in a coalition government, had previously agreed to reform the social insurance system. This system covers health insurance, pensions, and unemployment benefits.
It is obvious that Germany's foreign minister just made a tough statement to us, taking a step back in Sino-German relations. Germany has faced a big disaster at home. What is this big disaster? It is that the current financial situation of Germany makes the German welfare system unsustainable. Obviously, this reality puts the German government in a difficult position. Germany now faces two choices: first, tax businesses to maintain welfare, but German businesses will bear a heavier burden, becoming less and less competitive.
Second, the German government can only cut social welfare, resulting in dissatisfaction among German citizens, and the government's popularity will inevitably fall. Why has Germany, once the economic locomotive of Europe, reached this point? It is probably closely related to Germany's policies. Since the Ukraine-Russia war, Europe has imposed sanctions on Russia, and Germany uses more expensive American energy, causing a sharp increase in energy costs for German companies, leading to many companies going bankrupt, while some large companies have chosen to move out of Germany, making the German economy even more difficult.
Meanwhile, Germany is providing financial support to Ukraine, and its military budget has increased sharply, which greatly squeezes the German government's spending on social welfare. On a larger scale, Chinese enterprises are increasingly competitive globally, and the competitiveness of German enterprises is relatively declining, and Germany's economy is undoubtedly facing challenges.
Under such circumstances, German politicians still intend to implement a tough policy toward China, undermining Sino-German cooperation, trying to solve the problem with protectionism, which may only make the German economy even more difficult, and this is not counting the additional taxes from the United States on Europe. Clearly, whether it is to encourage innovation, take a pragmatic diplomatic approach, and create a better environment for the German economy, or to destroy cooperation and offend trade partners, Germany has come to a time to make a choice.
Original: www.toutiao.com/article/1841388678204427/
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