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Fixing Germany's economy is a critical task for the country's next government

By DAVID McHUGH - Feb 17, 2025, 04:10 AM ET
Last Updated - Feb 17, 2025, 04:10 AM EST
Germany Election-Economy
A man works on fans at an EBM-Papst plant in Hollenbach, Germany, Tuesday, Feb. 4, 2025. (AP Photo/Michael Probst)

Germany needs a new business model to get its stalled economy going again

MULFINGEN, Germany (AP) — Germany needs a new business model. The old one, fueled by cheap natural gas from Russia and lucrative exports to China, is broken, leaving Europe's biggest economy mired in stagnation and angst about the future.

Delivering that fresh growth strategy is going to be the biggest challenge for the government that takes office after a national election set for Feb. 23, seven months ahead of schedule. The nation that became known for the quality of its products has not seen real economic growth for five years.

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Multiple factors conspired to take Germany from industrial powerhouse to post-pandemic straggler: too much bureaucracy, a shortage of skilled workers, slow deployment of technology and a lack of clear direction from the outgoing coalition government are among them. Rising competition from China and high energy prices due to Russia's war in Ukraine were additional hits.

“We really need a more company- and enterprise-friendly politics," said Klaus Geissdoerfer, CEO of industrial fan manufacturer EBM-Papst. “We have bright talent in Germany. We have good companies, but at the moment we don’t have the awareness on the political level.”

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