Germany’s economy is shrinking right now and Europe’s engine has to be pulled once again with the historical epithet “Europe’s sick man”. There are several factors behind this, it is about a lack of qualified labour, the energy transition and the loss of Russian gas. At the same time, the German car industry is under heavy pressure from the new global competition that arises when electricity is to replace fuel engines, not least from China’s offensive entry into the electric car market.
Scholz calls for a gathering of power – but has difficulty steering the boat
Chancellor Olaf Scholz has called for a national effort and announced a “Germany Pact” to deal with the problems. But the coalition government often finds it difficult to agree and voter support is failing. For Sweden’s part, Germany’s economic problems have ripples that hit exports and, in the long run, unemployment risks increasing further. For countries such as the Czech Republic, Poland and Slovakia, the effect will be felt, not least because the German car industry has moved a significant part of its production there. Hear about the battles within the German government over what is the right medicine right now. In addition, we summarize the week with the chancellor behind an eyepatch – which of all the pirate jokes about Scholz was the funniest?
Contributor: Daniel Alling, Germany correspondent. Kristian Åström, economic commentator. Susanne Palme, EU commentator.
Program manager: Caroline Salzinger
Producer: Therese Rosenvinge
Source: ICELAND NEWS