Germany's Economic Model in Crisis: The End of Cheap Energy and Export Surpluses

Germany's economic model, built on cheap energy, industrial strength, and export surpluses, is no longer sustainable. The country faces a structural crisis, not just a temporary downturn, with the old framework historically exhausted. Policy responses continue to rely on outdated tools like bureaucracy reduction, longer working hours, and faster approvals, which fail to provide a new direction. Without political steering, market forces alone cannot build a future-proof society, risking social division and militarization. The situation demands a shift toward industrial policy to address the profound challenges ahead.