Ailing Germany slides down economic league

news.telegraph ^ | Wednesday 2 March 2005 | Kate Connolly

[longjack]

Tuesday 1 March 2005

Ailing Germany slides down economic league By Kate Connolly in Berlin (Filed: 01/03/2005) Germany risks becoming the new sick man of Europe as the Continent's one-time economic giant sinks deeper into malaise and falls further behind the rest of the EU, experts warned yesterday. The country whose post-war recovery was hailed as an economic miracle is no longer basking in prosperity but increasingly languishing in poverty, especially when compared with rival nations. The turnaround is likely to prove a huge blow to a nation which prided itself on its high standards of living and looked down on the rest of Europe as workshy, inefficient and technologically backward. The era when its car industry symbolised the country's formidable mix of innovation and engineering skill is now over and the future seems to consist of a long period of managed decline. By 2011, per capita income in Germany will have been overtaken by Spain, until recently one of the poorest in the European Union. Most startling is the finding that Germany has fallen way behind Britain in economic performance and individual purchasing power. While Germany was eight percentage points ahead of Britain just a decade ago, now Britain is nine points ahead. If that trend continues, Germany, which has had the lowest growth rate in Europe for almost 10 years, will eventually be close to the bottom of the EU's established 15 members (excluding the 10 new members who joined last May), just above Greece and Portugal. Even Italy, which is considered one of the weaker links in the euro currency zone, is likely to reach parity with Germany by 2007, new figures show. The study, commissioned by the newspaper Die Welt and backed by economists from the Cologne-based Institute of the German Economy and the New Social Market Economy Initiative, will be released today as new unemployment figures are expected to show the jobless total to have risen yet again to around 5.2 million. Germany could soon be receiving more money from the EU funds which support economically-disadvantaged regions, than it pays in, Stefan Bergheim, from Deutsche Bank Research, told Die Welt which published the findings under the headline "From Master to Mediocre". Experts from the New Social Market Economy Initiative recommend that the German government follow Britain's example and concentrate on tackling problems in the highly-regulated labour market in order to pull Germany out of its malaise. They argue that the reforms Chancellor Gerhard Schröder has so far put in place, which have led to a slump in his popularity and prompted street demonstrations throughout the country, are inadequate for the task of turning Germany round. "The recipes are out there," said Tasso Enzweiler, of the New Social Market Initiative. "To follow them we just need the British will, which is sadly lacking in Germany." The symptoms of decline are everwhere to seen and the impact on the country's morale has been dire. Its once generous welfare state now looks completely unaffordable and Germany is now suffering a brain drain of scientists. A people with a reputation as the hardest-working in Europe have come to hate work and unemployment has reached a higher level than at any other time since the Second World War. © Copyright of Telegraph Group Limited 2005. Terms & Conditions of reading. Commercial information. Privacy and Cookie Policy.

news.telegraph....www.telegraph.co.uk...Ailing Germany slides down economic league

longjack

[longjack]

I found this by reading and following links at the sites below:

David's Medienkritik....Over 5.2 Million Unemployed: Germany's Economic Tragedy Continues....Comments

and....

Peaktalk....END OF A Miracle

Both sites are in English.

David's Medienskritik is a site I recommend for English readers who wish to follow events in Germany.

longjack

[longjack]

German ping.

longjack

[HMFIC]

Germany and Europe in general experiencing the joys of SOCIALISM!

YOU bastards DESERVE it!

[2banana]

Germany needs to raise taxes, increase the welfare benefits and import more muslim immigrants...

[spyone]

German unemployment rate DOUBLE the USA. Nothing at all to learn from the Germans.

[pissant]

I would recommend that Germany ditch the anti-american 'tude, then millions of conservative US citizens would be willing to visit their country & spend lotsa $$$ (especially on the beer).

[end socialism now]

Bingo. This is yet another example of what socialism brings you. Rot in hell germany.

[Righty_McRight]

Their money is worth a lot though! Too bad they're not making very much of it. :( :( :(

[bill1952]

I'm not sure Longjack, but aside from Poland, and it's huge (19%+) unemployment figures, isn't Germany already the sick man to everyone except the Socialist Media?

I'm in the markets on a daily basis and it seems to be common knowledge.

[end socialism now]

I hope the falling dollar completely bankrupts germany. You screwed America, now its time for you to pay the price.

[Bertha Fanation]

Ain't socialism grand! Now, if the Dems in the USA have their way, we'll be there in the future too.

[bill1952]

Hehe. It's the Chinese peg to the falling dollar, vis a vie the overpriced Euro that is royally screwing the EU.

Their currency may be strong, but the price of oil just marches up to inversely match the dollar.

And I'm not even going to the price of Euroland goods versus the Chinese.

Notice that the EU is starting to make noise in China's direction, rather than just the US.

[americanbychoice2]

I have some very grave concerns following President Bush's visit to Europe.
If Europe does indeed carries through on it's intentions to supply sophisticated Arms to China, knowing the fragile situation with Taiwan, in the face of the recently signed agreement between Japan and the US, The problems may become more intense than the previous "cold War" with the USSR.
The US congress has already announce that those actions will face retaliatory actions.

What would be the sense of sharing military secrets with NATO, if they are then sold to China?
Is there a reason for the US to even stay in NATO?
If Europe believes they can just stay at the sidelines and instigate a War between the US, Japan and China just to pick up the pieces afterwards, they are guessing wrong. The appeasement Crocodile will for sure eat them not last.
Well, for one, new Taxes will be a welcomed sight to the Burocrats in Brussels?
Can you say "Defense taxes, EU enlargement taxes", etc. ?


Germany has priced itself out of the world market and receives no eternal or internal investments to jumpstart their economy.
The problems are many, to name a few:
Bureaucratic infringement on new business,
a bankrupt social system
an aging population
No discrimination laws
low productivity
etc., etc.

[longjack]

but the price of oil just marches up to inversely match the dollar

There was talk of using the Euro for oil prices a while back, but I haven't heard that in a while. Is that because of the high Euro ?

Also, regarding your post about Germany being the sick man. It seems to me that things are bad on the employment front, but that's just my view of the economic conditions in the town my wife is from.

I was just reading the comments on the unemployment article at David's Medienkritik. One poster said that German industry showed strong indicators and that they were the world's largest exporter.

The discussion was heated, but good, but I didn't see a answer that I felt was coming from someone with a strong economics/financial backgound.

What's your take on that, if you don't mind me asking?

longjack

[longjack]

Did you read the article and comments about the 5.2 million unemployment figure at David's Medienkritik yet?

I'd be interested in your take on that.

Thanks,

longjack

[Shanda]

I read just the other day that "Leica", may go under this year.

[longjack]

I read just the other day that "Leica", may go under this year.

I just found a couple of site about that, in German, though:

http://derstandard.at....Leica: Finanzielle Lage kritisch - Frisches Kapital nötig

"Frankfurter Rundschau"....Leica braucht frisches Geld

They expecting losses at 10.5 million Euros in March, looking for new capital and are trying to keep their employees.

I did a lot of amatuer photography, but not with Leicas :>).

Leica / Leitz: they're expensive, although you do get what you pay for.

longjack

[Shanda]

I can't afford a Leica camera either although I do have a pair of their binoculars.

It was given to me or I couldn't have afforded it either.

[albee]

BUH-BYE, Hans!
BUH-BYE, Fritz!

Nice to see you going downhill!

Wait til Dubya pulls our bases and soldiers out of your country.

"You ain't seen nuthin", yet!

[Phoneman]

Closer to triple the rate actually.

4.8 x 3 = 14.4%

Give em a few more months to enjoy the fruits socialism, and trip;e it will be.