Kaput

Until recently, Germany appeared to be a paragon of economic and political success. Angela Merkel was widely seen as the true ‘leader of the free world’, and Germany’s export-driven economic model seemed to deliver prosperity.Recent events have called this view into question, as Germany’s dependence on Russian gas has become a major liability. Wolfgang Munchau argues that the weaknesses of Germany’s economy have, in fact, been brewing for decades. The neo-mercantilist policies of the German state, driven by close connections between the country’s industrial and political elite, have enriched a small group of companies and shareholders but done little for the majority: the result has been spiralling income inequality. The dominance of industrial interests has left Germany technologically behind and thus slow to adapt to the digital realities of the 21st century. It has also caused an over-reliance on authoritarian countries such as Russia, leaving Germany isolated and vulnerable.This incisive analysis of the failures of Germany’s business and political elites from one of Europe’s leading commentators will be a must-read for anyone interested in contemporary geopolitics.