Home International The Wealth of the Eurozone is Seriously at Risk

The Wealth of the Eurozone is Seriously at Risk

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Is Germany on the Brink of Economic Ruin?

For years Germany has been the beacon of hope for the failing eurozone. Germany has long been an economic powerhouse driven by solid growth, consumer confidence and growing demand. However, times they are a changing; Germany is now feeling the pressures just like everyone else, and the economic data is none too flattering. For starters, industrial production figures in Germany have fallen to zero. Add to that declining consumer confidence and it’s clear why the economic bigwigs are deeply concerned about Europe’s number one economy.

Germany Not Immune to Failure

Germany is no longer immune to the economic slowdown that has gripped the global economy. A substantial allocation of Europe’s wealth is generated in Germany and a slowdown does not bode well for the region. In much the same way as the China slowdown is catastrophic for emerging market economies, Germany’s frail economy is starting to rub off onto its neighbours. Several European nations have failed to right the wrongs in their economies, including Spain, Greece and Italy, and for those reasons Germany is an invaluable component of any economic recovery that the region needs to go through.

China Weakness and Migrant Demands Weighing Heavily on Economy

One of the countries that will be heavily impacted by a collapse in Germany will be the United Kingdom. The other is China. Plunging demand is a characteristic of too many G-10 economies, and with China staring down a barrel there are real concerns that the region and the world could soon be heading towards another protracted recession. The French economy is heavily dependent on Germany, and a poorly performing German economy will pulverize the ailing French economy. And once again, China is at the heart of the problem: Weak Chinese demand for EM country exports is crippling Germany’s economic prospects with these very nations. Add to that the economic burden of millions of migrants, and it’s not a rosy picture at all.

China Europe Investment

 
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William R. Feins , freelance journalist from London, UK; he received his B.A. degree in Economics and his Masters in Sociology. William has always been interested in the mechanics of business and the inspiration of original thinkers, and firmly believes that the former can’t succeed without the latter. In his spare time, he enjoys the ridiculous spectacle of watching table tennis on a big screen (preferably at a pub) and reading weighty tomes about World War II.

10 COMMENTS

  1. The influx of millions of migrants will certainly be the Waterloo for Germany. In light of the dwindling economy there was no need to welcome migrants who will be an additional burden on the German economy.

     
  2. The influx of millions of migrants will put Germany in a tight spot. In light of the dwindling economy there was no need to welcome
    migrants who will be an additional burden on the German economy.

     
  3. Oh what tosh. Most of the top eurocrats are lobbyists and revolving door corporaocrats.

    The EU is every bit as corrupted by big money as the US and UK.

    If it was naively buying into the recession cult they’d have changed their minds and their policies by now.

    But do keep dreaming by all means.

     
  4. I think every European country will soon be in ruins but the rich bureaucrats at the top will still walk away very wealthy when it happens.I cannot believe after the evidence that the UK pays in 19 billion a year to Europe and get 9 million back dumb British people STILL think we should stay in.These people should be sectioned i think.

     
  5. Completely agree with this article. Germany is not immune to economic failure and the influx of migrants will only highlight this to the the rest of the EU and the world.

     
  6. The European have a lot of money just like the uk and US to spend. Being a uk resident I’m shocked to here uk gives 19 billion a yeAr to Europe and gets back 9 billion.

     
  7. Completely agree and couldnt of said it better myself. No country is immune from ecoomic crisis in todays world however the EU should be supporrting Germany more than it is.

     

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