The Germans fear an economic crash

"According to a study, half of Germans believe that the Federal Republic will no longer be a leading economic nation in ten to 15 years. The mood among the population and the economy has deteriorated massively.

According to a new survey, the confidence of Germans in the strength of the country has fallen dramatically within a few months: According to an Allensbach study, 50 percent of Germans believe that in ten to 15 years the Federal Republic will no longer be one of the leading economic nations in the world. In 2022 it was only 30 percent. Conversely, only 31 percent are now convinced that the state will play a leading role (2022: 48), according to a study commissioned by the CDU/CSU parliamentary group. This was presented on Thursday evening to the executive board of the Union faction.

According to the survey, the mood among the population and the economy has deteriorated massively. 58 percent of executives in business stated that Germany has passed its peak. 68 percent of the population see a sustained weakening of the industry - a similarly large number consider this to be a major problem. 76 percent of executives also believe that the concern that high energy costs will lead to de-industrialization is justified.

Doubts about the traffic light government

It was only on Wednesday that the federal cabinet decided on a package of measures designed to boost the sluggish economy. Chancellor Olaf Scholz had repeatedly warned against talking the country into a crisis. 

But only 41 percent of those surveyed still believe that Germany is a very good business location - a dramatic drop compared to 2022, when 71 percent of those surveyed said so.

Instead of 15 percent last year, 50 percent now doubt this. 83 percent find a reduction in bureaucracy particularly important, followed by modernization of administration, digitization and better education in schools and universities.

The lost trust is clearly linked to the traffic light government. According to Allensbach, 76 percent of those surveyed have doubts that the traffic light can advance the country. On the other hand, 55 percent think that the government's policy is still weakening the business position, only 10 percent believe it will be strengthened. The competence values for the parties are correspondingly poor: only seven percent each trust the SPD or the FDP to be able to strengthen the position. For the Greens it is only five percent, for the AfD, on the other hand, eight and for the Union 27 percent.” [1]

1. The Germans fear an economic crash

Frankfurter Allgemeine Zeitung (online)Frankfurter Allgemeine Zeitung GmbH. Sep 1, 2023.