Part 5/8:
As the industrial landscape struggles, the ramifications extend to medium-sized businesses, crucial players in Germany’s economy. The ongoing energy crisis, exacerbated by the situation in Ukraine, has wrought havoc on energy-intensive companies that now face sky-high gas prices. Additionally, competition from the growing electric vehicle market originating in China poses a formidable challenge to the traditional automotive industry.
Enter the concept of the “Debt Break,” introduced under Chancellor Angela Merkel’s government in 2009, which limits the extent of borrowing by the German government. This fiscal policy adds layers of complexity, preventing necessary investment in crucial sectors such as infrastructure, technology, and education despite looming economic challenges.