Rise And Fall of The German Economy… Energy Debacle Leading to Economic Meltdown
By P Gosselin
The number of Germany’s corporate insolvencies in March reached the highest level on record, new data reveal. It’s the Great Green Energies economic debacle
Blackout News here calls the trend “alarming” and that it is “a clear sign of the worsening economic crisis. The news are based on data released by the Halle Institute for Economic Research (IWH).
“There has been nothing comparable since 2016, the year the data was first collected,” reports Blackout News. “This development not only points to internal company problems, it also highlights the extensive economic challenges the country is facing.”
Insolvencies are even worse than during the Corona pandemic lockdown years.
“Exorbitantly high energy costs”
Analysts say the main driver behind the dire trend are Germany’s exorbitantly high energy costs, mostly due to the country’s mismanaged foray into green energies – like wind and solar – and the transition away from affordable and stable conventional energy sources like natural gas, coal and nuclear power.
“The wave of corporate insolvencies cannot be explained by poor business decisions alone. Rather, it is the high cost of energy, which is driving up operating costs in times of global uncertainty, and a tax policy that leaves little room for investment,” Blackout News adds.
Both, left and center-right, are to blame
The push to green energies, and away from conventional sources, began in earnest under the government led by Angela Merkel and her CDU center right party. The latest Socialist-Green coalition government, led by Olaf Scholz and Robert Habeck, have since pushed draconian policies that have only exacerbated Germany’s economic and energy woes.
Most experts argue that the government hasn’t been fixing problems, rather it has been making them far worse. It simply refuses to acknowledge the reality.
Industrial exodus…country needs more than just hope
“The current crisis demands far more from political decision-makers than just hoping for a calming of the market,” adds Blackout News. “Comprehensive measures are needed…the measures include a reduction in energy costs.”
Blackout News recently reported on the “industrial exodus” as “Germany’s economic crisis forces traditional companies to flee.”
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