The coalition led by Olaf Scholz may fall apart. The German government, among other things, is hanging by a thread. All due to the country’s poor economic performance. Tensions increased further after one of the coalition partners proposed reforms to Scholz to “heal” the economy.
“The risk of collapse of the German government has never been greater than today. “Even the potential geopolitical uncertainty created by the US election no longer appears to be the glue that will hold the government together.” – say ING Bank economists in their report.
According to the ARD survey, more than half of respondents support early elections and satisfaction with the ruling coalition has reached a new low of just 14%.
First of all, Germany has been in bad economic conditions for a long time. The former locomotive of the European economy is now called “the sick man of Europe”. The German economy has barely grown in the last four years and, according to ING analysts, “needs a major renovation”. Germany currently has a debt-to-GDP ratio of over 60% and a budget deficit of around 2% of GDP.
According to opinion polls, economic stagnation is sinking the German government. The Volkswagen car brand itself has become a symbol of economic collapse. A German company that has been the pride of this country can, for the first time in its history, close factories in Germany and lay off thousands of employees due to poor financial results.
