Germany's Economy Faces Energy Shock and Aging Autobahn Obstacles
Germany, once a global economic powerhouse, is now facing significant challenges as it struggles with an energy shock that has exposed long-standing flaws in its economy. The loss of cheap Russian natural gas, coupled with a slowdown in key trade partner China, has led to Germany becoming the worst-performing major developed economy. High energy costs and government inaction on chronic problems are threatening to deindustrialize the country, as new factories and high-paying jobs may relocate elsewhere. The government is facing criticism for its handling of the energy transition, including delays in approving renewable energy projects and a lack of investment in infrastructure. The proposal for a government-funded cap on industrial electricity prices has faced resistance, highlighting the debate over the best way forward for Germany's struggling economy.
