Germany Faces Mounting Economic Woes Amid Strikes, Fiscal Crisis, and Unpopular Government
• Germany's economy is struggling due to a mix of short-term issues like the war in Ukraine and long-term structural problems like an aging population and lack of infrastructure investment.
• The government faces criticism for being slow, overly bureaucratic, and divided, making it difficult to push through reforms.
• Various groups including railway workers, farmers, and hauliers are threatening strikes starting January 8th over issues like pay, agricultural subsidies, and higher road tolls.
• The constitutional court recently ruled the government's 2024 budget illegal, creating a fiscal crisis and limiting funds for the green transition.
• Scholz's governing coalition is deeply unpopular, with each party focused on distinguishing itself, making compromise on economic policies harder.