Germany’s economic model, which relied on cheap Russian gas imports and high-quality industrial exports, has collapsed in the wake of the war in Ukraine and the rise of China. While Germany avoided the recession that many had predicted this winter, restoring long-term competitiveness will be a far bigger challenge.
MUNICH – A few months ago, Germany was bracing for a harsh winter. After Russia cut off Europe’s natural-gas supply and prices more than doubled, German officials warned of power outages and rolling blackouts. Some cities reportedly planned to convert sports facilities into “warming halls” for the poor and the elderly, and the media speculated about energy rationing. But those predictions did not materialize. In the face of a historic challenge, Germany proved to be more resilient than many had believed.
MUNICH – A few months ago, Germany was bracing for a harsh winter. After Russia cut off Europe’s natural-gas supply and prices more than doubled, German officials warned of power outages and rolling blackouts. Some cities reportedly planned to convert sports facilities into “warming halls” for the poor and the elderly, and the media speculated about energy rationing. But those predictions did not materialize. In the face of a historic challenge, Germany proved to be more resilient than many had believed.