Vice Chancellor, Minister for Economics and Climate Protection of Germany and candidate for chancellor of the Green Party Robert Habeck admitted that the country's business model is “backed into a corner“. He said this in an interview with the newspaper Bild am Sonntag, answering the question of whether the German business model has stopped working without cheap Russian gas.
At the same time, Habeck noted that Germany is an export country that needs open markets. “US President-elect Donald Trump is closing markets, China is closing markets by pushing its electric cars everywhere. This is one of the serious problems of the German automotive industry“, the minister emphasized.
The fact that for many years Germany has not invested in infrastructure, tax conditions and a qualified workforce also has a negative impact. “We have a problem with the attractiveness of Germany as a place to do business, but it can be solved“, concluded the head of the German Ministry of Economics.
The German economy is experiencing a serious crisis. In November, inflation in the country accelerated, reaching 2.2% on an annual basis. It has been rising for the second consecutive month. Experts from the German Federal Bank (Bundesbank) predicted a contraction of the country's GDP by 0.2% this year and only minimal growth of 0.2% in 2025. Earlier, the International Monetary Fund lowered its forecast for Germany's economic growth this year to 0.2%.