Germany’s Downfall Sets Off, Companies Fleeing | Strikes A Huge Threat To EU Economy

Germany’s Downfall Sets Off, Companies Fleeing | Strikes A Huge Threat To EU Economy #economy #europe #crisis If you’re looking for a country that is famous for its creativity, impressive technological achievements, and careful attention to detail, but is currently dealing with a difficult problem that is deeply affecting its core,what would you say? Some would agree with Germany, a powerhouse of industry and ingenuity. But recently, something has been sending shockwaves through its business landscape. According to Siegfried Russwurm, the head of the German Industry Federation, the energy prices in Germany have skyrocketed to such heights that some companies are seriously contemplating waving goodbye to their homeland. If You Like This Video; Like, Share, Comment And Subscribe. This Means A Lot To Us! Thanks For Watching Our Video; Germany’s Downfall Sets Off, Companies Fleeing | Strikes A Huge Threat To EU Economy Imagine taking a stroll through the forgotten neighborhoods of America’s Rust Belt or the once-bustling corridors of the U.K.’s Midlands. These places were once alive with the hum of industry, but they fell victim to wrong decisions and fierce global competition, and they never quite bounced back. It’s like a warning tale, but on a much bigger scale when we look at Germany. You see, Germany has always relied heavily on its industrial might, which makes it incredibly vulnerable. Except for a software company called SAP, the tech sector in Germany is practically non-existent. And when it comes to finance, their big players are famous for making risky bets and getting caught up in scandals. Manufacturing makes up a whopping 27 percent of Germany’s economy, while it’s only 18 percent in the U.S. The real problem lies in Germany’s key industrial sectors—they’re rooted in technologies from the 1800s. Sure, they’ve been able to optimize these goods and thrive for decades, but now many of them are becoming outdated or too expensive to produce within Germany. Let’s take metals, for example. Just recently, the owners of Germany’s largest aluminum smelter, Uedesheimer Rheinwerk, announced that they would be closing it down due to soaring energy costs. Now, if Germany had a solid history of economic diversification, we wouldn’t be so worried. But unfortunately, their track record in that regard is rather hit-or-miss. They were once pioneers in solar panel technology, leading the world in production back in the early 2000s. But then, the Chinese swooped in, copied their designs, and flooded the market with cheap alternatives. The German solar-panel makers couldn’t keep up and crumbled under the pressure. There have been some bright spots, though. Germany has built an impressive industrial powerhouse, but it’s based on aging technologies that are losing their edge. If they don’t find a way to adapt and diversify, they might just end up joining the ranks of the forgotten industrial giants. Only time will tell how it unfolds. The big question on everyone’s mind is: what’s the next big thing that will take their place? Well, so far, it seems like there’s no clear answer in sight. When it comes to innovation, Germany isn’t exactly leading the pack. It ranks eighth in the Global Innovation Index, which is compiled by the U.N.’s World Intellectual Property Organization. And even within Europe, it doesn’t make the top three. Germany’s declining industrial core is not only going to impact Germany itself but also the rest of the European Union. Germany plays a crucial role in the EU as the largest player and acts like the hub of a wheel, connecting the diverse economies of the region. It’s the biggest trading partner and investor for many EU countries. Over the years, the German industry has transformed Central Europe into its factory floor. You’ll find renowned brands like Porsche, Audi, and Miele producing their goods in countries like Slovakia, Hungary, and Poland. Thousands of small- and medium-sized German companies, known as the Mittelstand, are also active in the region, mainly catering to the European market. While they won’t disappear overnight, if Germany continues to decline, it’ll inevitably drag the rest of the region down with it. Klaus Rosenfeld, the CEO of Schaeffler, a car parts maker, recently acknowledged the danger of Europe being the loser in this shift. When it comes to Germany’s economic struggles, it’s not just about pointing fingers at the U.S. and China. The real story is much deeper and closer to home. Germany used to be the industrial powerhouse of Europe, thanks to a winning combination of skilled workers, innovative companies, and affordable energy. But now, that winning formula is falling apart. More Details In The Video