Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street
Gaza Civil Defense spokesman: Claims that the Israeli occupation has withdrawn from areas in the neighborhoods of al-Zaytoun, al-Tuffah, and al-Shujaiya are false
Hamas: The two delegations stressed that any negotiations must lead to the achievement of our people's goals and aspirations, foremost among which is ending the war and the complete withdrawal of enemy forces
Hamas: A delegation from the Hamas leadership, led by the head of the leadership council, Mohammad Darwish, met with an Islamic Jihad delegation, headed by its Secretary-General, Ziyad al-Nakhalah

CDU Chair warns of irreversible deindustrialization in Germany

  • By Al Mayadeen English
  • Source: Agencies
  • 30 Jul 2023 15:24
  • 2 Shares
4 Min Read

The chairman of the opposition Christian Democratic Union (CDU) has raised concerns about the country's economic trajectory, highlighting the possibility of a significant and long-lasting decline in its industrial prowess.

  • x
  • A German flag flutters on the Reichstag building that houses the Bundestag (lower house of parliament) in Berlin is illuminated on early December 8, 2021. (AFP)
    A German flag flutters on the Reichstag building that houses the Bundestag (lower house of parliament) in Berlin is illuminated on early December 8, 2021. (AFP)

Friedrich Merz, the chairman of the opposition Christian Democratic Union (CDU), has told a German news agency that the German economy is projected to be the worst-performing among the G7 nations this year.

Merz highlighted several concerning economic indicators, such as a rise in unemployment during the summer, a contraction in industrial production, and a significant 16% increase in bankruptcies in the first half of 2023. That has raised concerns about further economic decline and deindustrialization in the country.

"Germany is losing competitiveness. This is not an abrupt process that triggers an overnight economic crisis [and] instead, we are experiencing a gradual process of deindustrialization in our country. You have to take this very seriously [because] something is happening here at the moment that may no longer be reversible. The federal government must react to this now," Merz cautioned.

The CDU chairman's remarks came in response to a recent statement from the International Monetary Fund (IMF), which forecasted that Germany had the worst-performing major economy globally this year. The country's manufacturing sector is facing persistent challenges and remains under significant pressure, contributing to the IMF's prediction of poor economic performance for Germany in the current year.

As per the IMF's projections, Germany's economy will experience the sole contraction among the Group of Seven (G7) nations by the end of this year, with a predicted 0.3% decline in its gross domestic product (GDP). The IMF had previously estimated that Germany's GDP growth would remain close to zero in 2023 but anticipates a gradual recovery in the following years, reaching between 1% and 2% growth from 2024 to 2026.
 
Clemens Fuest, the president of the Ifo economic research institute in Munich, agrees that the German economy is struggling to recover from the recession. The latest Ifo report shows a decline in the German Business Climate Index, which serves as a significant economic indicator for the country.

Paolo Raffone, a strategic analyst and director of the CIPI Foundation in Brussels, emphasizes the importance of Russia's long-term, reliable, low-cost, and abundant energy supplies to Germany's industrial sector development and strength.

Related News

Merz secures Greens’ support needed for defense spending boost

Germany moves to amend Constitution to increase defense spending

According to Paolo Raffone, the destruction of the North Stream pipelines in September 2022 held significant symbolism as it effectively severed Germany's energy ties with Russia and Eurasia. This event has had profound and far-reaching consequences for the German economy.

Raffone cautioned that the absence of convenient Russian energy supplies has led Germany to face another period of industrial challenges, which in turn have significant implications for the overall economy and people's lives.

On the other hand, Gunnar Beck, a member of the European Parliament representing the Alternative for Germany (AfD) party, said as quoted by Sputnik that while the collapse of Nord Stream and Germany's decision to participate in the West's energy sanctions against Russia are factors contributing to the country's declining economic situation, they are not the sole reasons behind it.

"The German government is pursuing very foolish policies in other regards as well. First of all, there is the so-called green transformation or green agenda. Germany is trying to replace not only Russian energy but all fossil fuels, and it's phased out nuclear energy," Beck said.

The big picture

With inflation hitting 6.4% in June 2023 and a series of interest hikes initiated by the European Central Bank (ECB), household consumption continues to suffer the plight of an economic downturn.

Prior to the beginning of the NATO-orchestrated war in Ukraine, Russian oil had enabled the German economy to boom, fostering job creation, and growth in various sectors, and contributing to trade surpluses that further stimulated the business cycles.

When sanctions on Russia were enforced and Nord Stream was blown up, Germany's manufacturing PMI, which measures the performance of the manufacturing sector, fell to its lowest levels recorded since 2020, with an index of 40.6 in June 2023 dropping from 44.5 in April. Moreover, weak demand from China and the US has shrunk exports, further fueling the contraction of Germany's economy. 

LBBW bank analyst Jens-Oliver Niklasch said that the survey's results suggest "we're in a recession and won't be getting out of it very quickly".  

  • CDU
  • deindustrialization
  • Germany
  • war in Ukraine

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS