Why complacent Germany needs to get a grip

The gas-supply crisis is merely the most conspicuous sign of the complacency and drift besetting Europe’s largest economy. Germany’s national business model needs an overhaul.

Nuclear power station in Germany
The decision to phase out nuclear power plants was catastrophic
(Image credit: © Prasit Rodphan / Alamy)

Germany’s economy stagnated in the second quarter, even as eurozone neighbours Spain, Italy and France all registered growth. Retail sales recorded their largest annual fall since 1994 in June, while gauges of business and consumer confidence are at their lowest levels in more than two years. Even Germany’s much-vaunted trade surplus has evaporated, with soaring prices for energy imports seeing it record a €1bn deficit on a seasonally adjusted basis in May. That is its first trade deficit since 1991.

What’s the problem?

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.