“Germany’s weakness worries Europe” is the title of an article in the economic magazine Handelsblatt. The newspaper points out that “Europe can no longer count on Germany as a growth engine. That impression was made in European capitals when this week Statistics Germany announced what was expected anyway: Federal Germany will enter recession in 2023, with GDP shrinking by 0.3%. Forecasts for 2024 call for a slight improvement at best. There is great concern in Europe that the weakness of the most important economy in the eurozone is consolidating as a permanent situation and negatively affecting the growth indicators of other countries”

The Dusseldorf newspaper points out the strong concern that prevails in neighboring France, but also in Italy about the developments in Berlin. However, as far as Greece is concerned, the correspondent of Handelsblatt in Athens estimates that “so far the Greeks are little affected by the course of the slowdown (of the German economy). Both in bilateral trade and in the important sector of tourism, German weakness has yet to have any visible effects. Greater is the concern in Greece about a possible political instability in Berlin”.

“Toxic mix” in the chancellery?

An analysis by the Süddeutsche Zeitung focuses on political developments, directly expressing doubts about the political survival of Social Democrat Chancellor Olaf Solz. “Almost toxic is this mixture created by the landless mentality, the perception that ‘we govern well, but the world doesn’t understand’ with the incomplete understanding of reality,” the columnist notes.

But what is the political conclusion from all this? “Perhaps Olaf Solz’s term as chancellor is no longer saved, that is something the (social democratic) party will have to deal with. (…) Now must be the time of leaders, both in the party and the parliamentary group. They will either exert their influence on Soltz by seeking a restart or they will have to look for some other way out.”

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Frankfurter Allgemeine Zeitung (FAZ) also criticizes the contradictory handling of the three coalition parties in drawing up a new budget: “The ‘cuts plans’ of the coalition government, which are revoked or revised almost on a weekly basis, give the impression that politics is locked in numbers and he no longer has any freedom of movement. And yet, the amounts being talked about are just a drop in the ocean of politics. But as he presides over what is desirable and not what is necessary, the creative dimension of politics is limited to serving client interests.”

Giannis Papadimitriou