The formation of a “grand coalition” government in Germany has left economicSource MEPS
commentators unimpressed. Many believe decisive and radical action is needed to
spur industrial growth – and, with it, steel consumption. But a coalition
government – composed of left and right wing parties who have little in common –
could see compromise, indecision and even paralysis.
Once the powerhouse of
the European economy, Germany has been floundering. National finances have
deteriorated as stagnation took hold. More than 10 percent of the workforce is
One might reasonably argue, that the European Community in general has done little to promote manufacturing. Apart from it’s historical obsession with agriculture, its ability to bind business in “red tape”, tends to surpass even the best efforts of National Governments.
Coalition Governments, by there nature tend to be slow and laborious at decision making, we can only hope that the pressure of unemployment will lead to Germany re-establishing itself as an Industrial powerhouse. Europe needs strong individual economies, and Europe needs a strong Germany.