![]() ![]() Then Berlin’s insistence in the debt crisis that countries such as Greece accept tough conditions for emergency loans fuelled more resentment. Germany, thanks to labour market reforms, overcame a spell as the “sick man of Europe” at the turn of the millennium, but its success in selling more to its European neighbours than it bought, antagonised many countries that borrowed to buy German goods. The result: an icon of industrialism grudgingly admired around the globe.Īll this fuelled leaps in exports through the 1980s, 1990s and 2000s, by which time the Deutsche mark had been replaced by the euro at a rate which made German exports attractive. The country’s Bundesbank held its currency steady, cheap Russian gas powered industry and unions were tied into management boards to control wages. ![]() ![]() Nobody’s perfect.”Īfter the World War Two, Germany, bolstered by US aid, built its economy on cars, machinery and chemicals, controlled through banks such as Deutsche Bank owning stakes in industrial firms – a system known as Deutschland AG, or Germany Inc. “If ever somebody viewed Germany as a role model, maybe it’s time to have a realistic view about strengths and weakness. “This may really be the beginning of a weaker period for Germany,” said Achim Truger, one of the government’s chief economic experts that advises the chancellery. German regulators put that collapse down to fears for the country’s economy in the face of curbs in the supply of Russian gas that underpins industry, said one person with knowledge of the matter. Just weeks earlier, on the same day as Berlin edged towards rationing energy, shares in Deutsche Bank (DBKGn.DE) and Commerzbank(CBKG.DE), the country’s flagship lenders and bellwethers for its economy, tumbled around 12 per cent. Selling more than it buys has been a central tenet of Germany’s ascent to the global economic elite.(Graphic) Finance minister Christian Lindner compared it with a “profit warning” – a red alert companies issue if earnings are set to disappoint. ![]()
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