mead cohen berger shevtsova garfinkle michta grygiel blankenhorn
Has the European Virus Infected Germany?

Take a look at the latest grim economic data from Europe: Industrial output in Spain dropped for the tenth straight month, and now the German economy appears to be spluttering:

German exports, a major source of growth for the country, fell in June for the month, after recovering the previous month from an earlier decline, the federal statistics office said. . . .

Data released Tuesday showed an unexpectedly steep decline in German factory orders in June, as demand from other euro-zone countries slumped. And sentiment indicators point to weakness especially in German manufacturing, which accounts for about a quarter of the country’s nominal economic output. Germany’s closely watched Ifo business confidence survey showed a third straight monthly decline in July.

The Eurozone’s largest economy is being weakened by the Club Med contagion, and the lower euro (which has fallen nearly 10 percent since February) isn’t providing much of a cushion to Germany’s vital export sector.

This is beginning to look like Europe’s nightmare scenario.

Features Icon
show comments
  • john haskell

    Germany’s “vital export sector” was exporting goods to Club Med. And Club Med paid for their imports by borrowing money from Deutsche Bank. It’s always funny when you run in to people who don’t know this.

  • Kris

    “This is beginning to look like Europe’s nightmare scenario.”

    Not much of a nightmare, by historical European standards.

    But enough about the European financial crisis. What did you people think about Groundhog Day?

  • Eurydice

    Yes, of course, because up until now it’s been a picnic.

  • willis

    Looks like the Germans will just have to double down. Here are some good cures for their slumps. Invest in your children by increasing your teacher pay. Run a trillion dollar deficit. Somehow Keynes determined that this will make you more prosperous. Throw a big stimulus party with the money going to local governments to fund even bigger unfunded government pensions. If you don’t have a leader with the vision and courage to go for the gold, we can loan you Obama. Keep him, the treat’s on us.

  • egoist

    If they get desperate, they can always dump some BMWs my way; bike, car… I’ll take either. An Audi R8 would be nice too, but not that crappy $170K version, I want the $200K one.

  • Snorri Godhi

    This is excellent news: it means that Germans have no more room for complacency.

  • Dave

    How about investing in your children by actually having children?

  • teapartydoc

    Gee. These “drive-by postings” can get pretty depressing for Europhiles who want us to emulate everything they think is soooo goood thousands of miles from home. An attitude that reminds me of some of the girls I went to school with. Guys from across town schools or from other towns were always like gods to them. They were just guys, but seeing them from afar kept the girls from seeing their faults.

  • Alice Finkel

    Germany has adopted an Obamaesque energy policy called Energiewende. It consists of shutting down all nuclear power plants, and putting the German power grid at the mercy of big wind and big solar energy. German industry has serious doubts about the future quality and reliability of German power production — and many industries are looking to relocate.

    And since the German grid is at the center of the European grid, if the German infrastructure goes down, it’s taking the rest of the continent down with it.

    Buckle up!!!

© The American Interest LLC 2005-2016 About Us Masthead Submissions Advertise Customer Service