The Big Take
Europe’s Economic Engine Is Breaking Down
Germany is at risk of a long, slow decline — with consequences for the whole of the EU
Germany finds itself ill-suited to serve the energy needs of industrial giants like BASF SE over the longer term.
Photographer: Alex Kraus/BloombergGermany has been Europe’s economic engine for decades, pulling the region through one crisis after another. But that resilience is breaking down, and it spells danger for the whole continent.
Decades of flawed energy policy, the demise of combustion-engine cars and a sluggish transition to new technologies are converging to pose the most fundamental threat to the nation’s prosperity since reunification. But unlike in 1990, the political class lacks the leadership to tackle structural issues gnawing at the heart of the country’s competitiveness.