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Free AccessMNI BRIEF: German Economy Faces Big Challenges - Buba's Nagel
Germany’s manufacturing-based, export-driven economic business model faces multiple challenges, Bundesbank president Joachim Nagel said in a speech Monday in which he cited reorganised supply chains, increased energy costs, demographic shifts, geopolitical conflict, decarbonisation and the effects of climate change as key issues to be overcome if the country is to maintain its historic strength. (see MNI INTERVIEW: German Recession On The Cards - ZEW's Wambach).
“A new balance is being sought between efficiency and resilience,” Nagel said, adding that it “makes sense” to restructure supply chains away from dependency on China, while remembering that “government intervention in international trade beyond the establishment of general rules requires special justification and should remain an exceptional case.”
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