Policy Briefs

C. Bastasin: Germany’s economic weakness may help strengthen the European Union

Germany's economic weakness, highlighted by the recession in 2023 and the uncertain outlook for the current year, has non-cyclical characteristics that have been amplified by the recent dramatic crises of both a strategic and macroeconomic nature. The challenge for German leadership involves a long-term vision that goes beyond the modernization of the national business model and needs to define the geo-economic role of the country. While in the past Germany's business interests were determined by relations with non-European countries, starting with energy supply from Russia and the import of growth from China and the United States, in the years to come economic interaction with European Union countries may be set to become vital again, with implications for Berlin's incentives to support greater European economic and political integration.  

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