"Germany's Economy Grapples with Energy Shock, Unveiling Deep-rooted Flaws"

Germany, once known for its economic success, is now facing significant challenges as it becomes the worst-performing major developed economy. The country's energy-intensive industries have been hit hard by the loss of cheap Russian natural gas following the invasion of Ukraine, exposing flaws in Germany's economy. High energy costs and government inaction on chronic problems threaten to lead to deindustrialization and the relocation of factories and jobs. The government is facing criticism for its handling of the energy transition and the slow approval process for renewable energy projects. Germany also faces issues such as a shortage of skilled labor and lagging use of digital technology. The government is urged to take urgent action, including implementing a price cap on industrial electricity to support the renewable energy transition and provide certainty for businesses.