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Anyone who has something important to say in political Berlin books the large room at the federal press conference. In front of the wood-framed blue wall, successes are announced, lofty political plans, resignations – or really bad news.
Today was a day of really bad news. The leading German economic institutes announced their growth forecast: 0.1 percent. A number, like a punch. It’s no longer running in Germany.
Pointing the finger to Berlin
There are many culprits and reasons too. The high energy prices, for example, which are affecting the energy-intensive German economy, especially the steel and chemical sectors, but also the automotive industry.
But many fingers also point to Berlin, to the Chancellery. The traffic light coalition under the leadership of Chancellor Olaf Scholz is also messing up in economic policy. The “Growth Opportunities Act” finally came through the parliamentary institutions – but it was massively slimmed down and probably not suitable for significantly promoting investment and thus growth.
Economists rub their eyes
Everyone is muddled around – German industry is completely dismayed by many of the decisions made in Berlin. The best example is the handling of electric cars. Practically overnight, state funding was radically cut. Of all things, from a government in which the Greens wanted to promote the energy transition as a central project.
The result of the government’s lurching course: sales figures for electric cars are collapsing, electric car factories like Volkswagen’s in Saxony are fighting to keep their capacity to capacity. Who can actually rely on Berlin’s political decisions? At the same time, car manufacturers from China are pushing into the German market with affordable electric cars. A horror scenario for Mercedes, BMW and Co. really bad news.
Another important reason for the economic weakness is the shortage of skilled workers. And now, of all times, the rail unions have gradually pushed through the 35-hour week for train drivers from 2026 until 2029. It’s not just economists who are rubbing their eyes.
Fears also in Switzerland
It looks a bit like Germany is in masochistic self-harm mode. That would be bad enough in itself – but Germany’s weakness also affects Switzerland.
The local industry exports 25 percent of its products to Germany. Our northern neighbor is by far the most important export market. It is said that if Germany coughs, Switzerland has the flu. The fears are correspondingly great in Switzerland.
And we can’t expect good news from Germany any time soon. Many say it is time for Scholz to act and present a crisis program that really works. Something with hand and foot, best presented at the federal press conference. Where people who have something to say book the hall. Something important.
Stefan Reinhart
Head of foreign correspondents
Open the people box. Close the people box
Stefan Reinhart is head of foreign correspondents and head of the Zurich newsroom. Previously he was Germany correspondent for SRF.