Germany’s economy is in jeopardy, according to a top professor, who claims Angela Merkel was ‘fortunate’ when her power waned.
According to a top economist, Germany’s tremendous economic success in recent years is due to “chance” rather than design.
The German Institute for Economic Research’s president, Marcel Fratzscher, feels that his country’s economic model is now “increasingly holding back our competitiveness and prosperity.” Germany is at a “crossroads,” according to the academic, with long-serving Chancellor Angela Merkel stepping down after 16 years at the helm next month.
He warned in the German publication Die Zeit that the belief that the country’s recent triumphs are the “product of good politics” is a hazardous illusion.
“It was a stroke of luck,” he continued.
“German corporations benefited more than others from the export boom in Asia’s rapidly expanding emerging markets.
“They also profited from the employment miracle, which saw over three million more people enter the German labor market, principally through the immigration of young, highly driven Europeans and the increased employment of highly skilled women.
“The most important contribution of Angela Merkel’s economic policies was not active support for the economy, but the securing of stability and a remarkably successful handling of the four major crises during this period: the global financial crisis and the European economic crisis between 2008 and 2012, the high refugee migration from 2015, and the cohesion of the EU.
“In doing so, the Chancellor has consistently demonstrated exceptional intuition in saying and doing the right thing at the right time, so fostering trust and ensuring stability – not only in Germany, but also in Europe.”
Mr. Fratzscher, on the other hand, said that there was “almost no formative economic strategy” and that the 2008 financial crisis was not exploited to overhaul “Germany’s dysfunctional financial system.”
He argued that in every crisis the country has experienced in recent years, it has failed to use the chaos to overhaul failing institutions.
As a result, “the German model, which is increasingly functioning as a brake on the country’s worldwide competitiveness and prosperity,” has been overtaken by much of the global economy.
The news came as one of Ms Merkel’s closest allies slammed her for signing a deal with Joe Biden to ensure the Nord Stream 2 gas pipeline connecting Russia and Germany is built.
The decision, according to German MEP Manfred Weber, is “detrimental” to the entire. “Brinkwire Summary News.”