Europe’s Economic Engine Is Breaking Down

Flawed energy policy, the demise of combustion-engine cars and a sluggish transition to new technologies pose the most fundamental threat to Germany's prosperity since reunification. The country's economy has been contracting since October and has only expanded twice in the past five quarters. Econo

May 26, 2023 . 10:21 AM

1 min read

Decades of flawed energy policy, the demise of combustion-engine cars and a sluggish transition to new technologies are converging to pose the most fundamental threat to Germany's prosperity since reunification.
The country's economy has been contracting since October and has only expanded twice in the past five quarters.
Economists see German growth lagging behind the rest of the region for years to come, and the International Monetary Fund estimates Germany will be the worst-performing G-7 economy this year.
Germany needs cross-party agreement on the speed of expansion of renewable energy infrastructure.
Germany's lack of investment is particularly acute in digital technology.