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Germany's growth rate for GDP in 2016 was 1.9% compared to 2015. This is the highest growth rate in half a decade, and better than 2015 when the growth in GDP was 1.7%. Fiscal surplus was 0.6% of GDP in 2016. Germany's Economics and Technology Ministry says the economy is improving because of the positive labor situation, rising incomes and consumer spending. Real estate boom is also helping growth, and also the state spending including on refugees accomodation. Exports have surged and the economy has recovered from the Brexit effect. Exports surged to 1.1 trillion euros in 11 months of 2016.

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Germany is trying not to choose sides in the trade and security disputes between China and the U.S. Yet it owes a lot to the U.S. from the days of the Marshall Plan and U.S. taking on the role of defending Germany after the Berlin Wall. China was then a partner with the Soviet Union in the Cold War.  Today China is Germany's top market for its car industry. Yet the U.S. export market is much larger than China at $119 billion with China's at $96 billion. In Germany 28% of jobs are linked to exports, and in manufacturing this goes up to 56%, according to Germany Ministry of Economic Affairs. Germany supplied much of the factory  equipment from its engineering companies and the infrastructure that powered up the China transformation. A transformation now underway in India.  There are signs of a shift as engineering companies in Germany grew faster in the U.S. than China, increasing by 6-10% a year. India remains a key growth market for Germany over the next 10-15 years as growth in China slows and India accelerates with its younger demographics and investment in infrastructure. Much of the infrastructure in China is built and it is approaching the saturation Japan reached in the 1990's with additional investments adding little in the way of productivity. Longer term Germany has more potential for growth in countries in South and South East Asia  that will need to make huge investments in infrastructure and technology for manufacturing to meet the aspirations of the people there. Other issues related to freedom going back to the Berlin Wall and the rebuilding of Germany after World War II will emerge. German companies are running out of patience says this report in the WSJ with the bureaucratic obstacles, forced technology transfers, subsidies by state model to extinguish competition, and protectionist approach to home markets, even as state funded companies in China put other companies in Europe, Asia and the U.S. at a disadvantage. Germany will need to transition to a shift in its global relations, a process that is only now taking place. Just as with austerity policies in which it has now made the shift from going with the northern European countries (Sweden, Denmark, Netherlands, Finland) to the Southern European (France, Italy, Spain) in favor of common solidarity even at the short term cost of common debt, Germany now is facing the shift for solidarity with the U.S. for its support of Germany from the period of the Berlin Wall in the 1950's, for the U.S. and European solidarity in the face of the post-coronavirus world. The U.S. showing its generosity and openness to Germany and war torn Europe even as it took on the added responsibilities for creating a new alliance with Europe.   ...

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Germany enters a second Shops and schools remain open, restaurants and bars, cultural venues, sporting facilities will remain closed. The lockdown is required to bring infections down, says German chancellor Angela Merkel. Some restrictions may be lifted December 20, but it is more likely that restrictions will remain in place till the beginning of January, says Merkel, because of the rate of new infections.

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Hear the complete speech of German Chancellor Scholz to an extraordinary session of the German Parliament on DW.com. This may be the most important speech in the last 30 years of German history since reunification. An extraordinary speech that sets the tone for the new Europe that Germany leads with its partners in the European Union. Fundamentally Scholz tells the German people that Germany is fighting alongside Europe for its freedom and democracy, so that the last 30 years of peace are seen not as an exception in history. Germany will not let Putin take us back to the imperial wars of the 19th century, Putin told parliament. Scholz tells the German people sending arms to Ukraine "was the only response possible to Russian aggression." He also tells them that it was not the Russian people, it was Putin who had launched this aggression. "This is Putin's War. Putin is destroying the European security structure." "A peaceful free Europe, we will defend it." This is the way Scholz finished his speech. Scholz outlined 5 actions Germany was taking including actions on investing $100 billion in Bundeswehr armed forces, in strengthening NATO capabilities, in building up Germany's technological capabilities, in 2 huge natural gas terminals. The entire German parliament stood up to applaud for a long time as Scholz described how Germany was with the Russian people who braved arrest to protest Putin's War, and there are many, many, Russians who do not support the war. Reconciliation with Russia remains a building block of German policy he said.   ...

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A look back at the Merkel 16 years in Germany and the European Union, the compromises to keep the Social Democrats out and her party the CDU in power, the failures in preserving social mobility in German society, immigration that led to divisions in German society, and climate change where she took some faltering steps. Only in the end did Merkel put all her convictions behind Scholz and the effort to bring trillions of euros of aid to Germany and the European Union devastated by the coronavirus pandemic. This may be her singular achievement.

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German industry and arms buildup to counter Russia in Ukraine January 2026.

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About 1 million jobs in Germany depend on China. Scholz is derisking but not decoupling Germany's relations with China because of the close linking of the two economies under Merkel. About half of German business depend on China for some part of their supply chain or for parts. Yet it is clear that the relationship has changed after the pandemic and the war in Ukraine, the lessons learned from the shutdown of oil and gas supplies from Russia, the search for alternative supplies to get through the winter. Germany like the US is rebuilding its supply chain to correct the over concentration in China. The annual dialogue between the leaders of the two countries is also no longer the same as premier Li Qiang of China meets chancellor Scholz.

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The most important response in the Ukraine invasion comes with Chancellor Olaf Scholz's speech to the German parliament. Berlin will not tolerate Russia forcing states in Eastern Europe into its sphere of influence, Scholz told German parliamentarians who stood up several times to applaud. No more hesitant steps. Germany also stands with the Russian people for historical reconciliation, an important signal to the Russian people who in no way are united in support of this invasion of a neighbor and a fraternal people, Scholz stressed. Demonstrations are shown here in DW.com in St Petersburg, Russia's cultural and historic capital, with people shouting "No war!"

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Germany's state development bank KfW has signed a memorandum of understanding with German energy company RWE AG to build a new LNG terminal at the northern port city of Brunsbuttel. Netherlands infrastructure group Gasunie will operate the new LNG terminal. The Nordstream 2 $11 billion project is now set aside and Germany plans to use the LNG terminals and other sources outside of Russia. Germany commissioned its gas market trading hub to buy LNG of 1.5 billion euros. 

Germany will now fast track another LNG terminal on the North Sea at Wilhelmshaven. That terminal would be operational in 3 years. 

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Africa's Harrison Mwillima looks at Geman reunification from an African perspective of regional integration, and says unity should be an everpresent endeavour. Visiting cities in East and West Germany organized by DW's Africa department he is struck by how much East Germans feel left behind. Merkel herself grew up in East Germany but like many young people in 1990 left for the west and seemed to forget the east where they came from. He remembers the time when people from Angola , Mozambique and other African countries studied at universities in the German Democratic Republic, former east Germany,  and the sense of socialist solidarity that aroused much enthusiasm.  Mwillima says a sense of unity can only go so far if there is a lingering sense of inequality  between the two parts. He sees a distinct hunger to achieve unity among regions and peoples or countries. Yet 31 years later in Germany its not only worth pursuing this ideal but remembering that it has to be done as a natural and ever growing endeavor that is not just an event. ...

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Trade and economic relations between Germany and China are deteriorating. See the video on Economy minister Habeck "The Naivety towards China is over," in this DW.com report. Habeck said this at a G7 economy ministers meeting in September- "the naivety towards China is over." Habeck has denied the VW group guarantees for investments in China in May. German companies business in China was supported by government guarantees for exports and investments in China. Germany has about 90 billion euros of investments in China. The relationship began in 1972 when China was a poor developing country, and surged particularly in the Merkel years when China was no longer a developing country. Today Germany and the US face technological competition from China and the reappraisal of global supply chains overly dependent on one country.

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Germany's Foreign Ministry warned in a cabinet note that investment by China's COSCO in Hamburg port terminal "disproportionately expands China's influence on German and European transport infrastructure as well as Germany's dependence on China." Germany handed over a 25% stake in the Hamburg port terminal to China's COSCO shipping with the decision approved by chancellor Scholz. Several government ministries in Germany including the Economy ministry headed by Habeck and the Foreign Ministry have opposed the bid which is seen as having geopolitical aspects as Germany has no stakes in Chinese ports. "On behalf of the Foreign Ministry, I point out the considerable risks that arise when elements of Germany's transport infrastructure are influenced and controlled by China- while China itself does not allow Germany to participate in Chinese ports," said the note from the Foreign Ministry brought forward by Anna Luhrmann, Minister of State for Europe.  China is seen by Germany and NATO as posing security challenges. "In this respect the acquisition of the container terminal does not only have an economic aspect, but also a geopolitical aspect."  ...

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On September 26 Germany holds a general election to decide who will lead Germany after Merkel. Olaf Scholz of the Social Democrats is seen as personally popular for his work in government with 48% support in recent polls, with Armin Laschet of the Christian Democrats at 24% and Annalena Baerbock at 27%. The Social Democrats poll 24% and are expected to form a government with the Greens at 16% and the FDP party. Baerbock of the Greens and Armin Laschet of the Christian Democrats have lost support in recent weeks with the floods and other events. The figures are from Deutschlandtrend poll by Infratest dimap Institute.  The CDU of Merkel looks less likely to form a government under leadership of Armin Laschet today compared to a few months before. Merkel is still popular with most Germans but this support does not carry over to Armin Laschet. There may also be some sense among Germans that it is time for a change in government after the Merkel years even though she is personally popular. The difficulties imposed by the pandemic on the German people, and the added problems of the floods could lead voters to look for change in government under new leadership more sensitive to the problems of today- infrastructure, employment participation of people held back by the pandemic, and rebuilding healthcare, education, childcare systems, tackling climate change issues. ...

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King Charles has German ancestry and has visited Germany no less than 40 times on mostly private visits. Here DW.com shows pictures from these visits. During these visits Charles has developed a connection with Germany. He will visit Berlin and Hamburg, including a visit to Nikolai Church in Hamburg preserved in memory of Allied bombings that left 1 million people homeless. As Europe faces another war and its history of conflicts which involved much of Asia by the nineteenth and twentieth century it provides a period of reflection on what can be done to shape the future in ways that benefit humanity. In another first he will address the German parliament the Bundestag. He did this once before during Covid, this time it will be seen throughout Europe and comes as the European Union is struggling to establish its own identity.

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Germany has a patchwork of restrictions to tackle coronavirus. This is a serious problem during the third wave in April 2021. There is a lack of clarity as the 16 states within Germany's federal structure each make their own rules. This has weakened the power of the federal government and chancellor Merkel in setting rules for the whole country. A You.Gov poll shows 53% of Germans support the federal government setting the rules. Interior minister Seehofer is considering a new federal law to make this happen.

 

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Nancy Faeser, says "this is a strong commitment to a modern Germany." Germany's Interior Minister is pointing to the new dual citizenship law that will enable Americans as well as the many Polish and Turkish people in the country to have dual citizenship. Germany now joins Sweden, Ireland, France and other countries where dual citizenship is allowed. There are economic reasons for this as Germany needs to attract highly skilled immigrants for its labor force. Faeser says Germany will attract the most qualified people in the world only if it can ensure they enjoy full democratic rights in the foreseeable future. The CDU and Merkel for years opposed any changes to the immigration laws. It is the SPD, the Greens and the Free Democrats that are making these changes as Germany looks to the future.

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France has reacted faster to the economic crisis presented by the pandemic. It shielded its economy earlier with government support and household consumption has held up better. Its presidential system led to faster decisions than Germany's decentralized mode leading to some experts saying it should borrow this aspect from France. France also has 70% of its energy from nuclear, Germany by contrast depended too long on Russia and Merkel's decision to completely get out of nuclear and to let overconcentration of supplies of energy from Russia happen was a mistake. Merkel also supported the auto industry without anticipating changes taking place after the Copenhagen Climate conference in 2009 and preparing for the future. The auto industry has taken a hit in Germany as it relies too much on imported EV batteries from China and was slow to make the transition to EV's and hybrids. In fairness to the SPD's Scholz and Greens Habeck considering the economy handed to them by Merkel they had to scramble after the Russian war in Ukraine in the middle of the pandemic. Germany made it through in record 1 year's time to be independent of Russian oil and gas, a huge achievement. Over time Germany will recover as it makes a transition of business away from overconcentration in China, another of Merkel's and German business failures to develop a vision for the future. China's slowdown has affected Germany. Germany has to invest in other parts of the world including in India and Japan to diversify the supply chain. Overall score card would give Habeck and Scholz a lot better score, Merkel and German business leaders of the time a low score, and Frnce and Germany about the same score. France for a steady response, and Germany for the speed in which the oil and gas crisis handled considering also that both countries have a centralized and decentralized system based on their respective history and culture. ...

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Climate protection goals require rail to get its standards up and modernize quickly in Germany. Deutsche Bahn, the German Rail Network accepts that it needs radical changes. It is important to attract more people to urban transit and rail to promote climate change initiatives and to reduce gas consumption in Germany.  The head of the Deutsche Bahn Richard Lutz says the German Rail has been neglected for years and pushed to its "absolute limit."  Many rail points and signal boxes are obsolete and highly prone to failure.  About 51,000 passenger and goods trains travel through Germany every day going up to 59,000 in 2030.  Lutz says it cannot stay this way- "Increasing demand, combined with aging infrastructure and construction work, is leading to traffic jams and delays with a massive impact on all customers." More than this there is the the question how do you attract more people to not drive but take the train to save gas consumption and reduce the impact on the environment when things are so bad in the rail network? The dilemma says Lutz is "how to grow and modernize at the same time?" Under Lutz and Transport ministry plans high performance corridors are to receive a first class quality standard. More customer friendly construction should be used. And planned construction done in such a way that some sections are construction free sites for several years. Heavily used sections make up 10% of the network or 3500 kilometres and operate at 125% of capacity. By 2030 these sections will be 9000 kilometres or triple that now. Climate protection goals require getting rail up to speed.  ...

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France and Germany agreed to begin talks on a common nuclear umbrella in Jan 1997 as reported here in The Washington Post on Jan 25, 1997. 

The post cites Le Monde- "Our two countries see themselves exposed to the same risks. We are ready to open a dialogue on the role of nuclear deterrence in the context of European defense policy." Says the document signed by Germany's Helmut Kohl and Frances Jacques Chirac on Dec. 9, 1996. France had clashed with the US under De Gaule and De Gaulle had pursued an independent nuclear deterrent. Chirac took up this stance in 1996 with nuclear tests in French Polynesia and offered to share its nuclear deterrent with Germany.

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Germany Economy Minister Peter Altmaier says Germany expects a shallower recession. GDP in 2020  is expected to be down by 5.8% much lower than the 10-15% in other countries. Exports in June were up by 15% to China and down by 20% to the U.S. Economies of Spain and the UK are expected to see twice the decline in GDP in 2020. Italy and Germany are seeing a increase in manufacturing output, Spain and France a decline. 

Still Germany remains exposed to other trading partners than China, such as the U.S. and Britain, total exports are expected to be down 12% in 2020. About 11% of workers are using short term work subsidies to stay at home. Cases of the virus are surging in France and Spain. In Germany there is a surge but it is slowing since last week. Mr. Altmaier thinks Germany can avoid a second lockdown.

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German Foreign Minister Johann Wadephul thinks the Putin Zelensky meeting is unlikely. He is on a tour to Japan. Wadephul talks to DW Germany in this interview explaining his perception of the war in Ukraine and prospects for peace through high level summit meetings when both sides are far from agreement on basics.

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From the country of "Feierabend" the much appreciated German term for cutting off the workday to do something else like biking or running which is very healthy way of living during the pandemic and everyday, come more German expressions which tell us  more about how to live.  "Na Wie Lauft's" is the German expression most people learn because it means "how are you running", and shows people you care about them. Here DW.com, looks at other German expressions with wonderful pictures of people and scenery in Germany to accompany each expression that has a soothing, calming effect on all. The meanings are given by DW.com, the German national broadcaster which also helps people learn German. "Die Dinge Laufen Lassen," is another German expression that has a Zen nature and is one that one take comfort in for its calming effect. It means "let things run their course, and everything will be alright in the end." "Noch in den Kinderschuhen stecken It means things are only in the early stages, beginning to develop, unfold, the ball is only beginning to roll. With it goes "Laufen Learnen" which means you have to walk before you can run. "Lugen Haben Kurze Beine" means "Lies have short legs." It suggests walking or running. It says you won't get far with lying, you won't get ahead with it, somebody will see through you. "Auf dem Ruder laufen" means to lose control of an oar while rowing a boat to stay on course. It also means hang tight and things will right themselves eventually. And to go with this is the German expression about learning the procedure or techniques for getting the work whatever it is done correctly. Wie est der Ablauf" how will things run, what is the procedure for doing it? Positive expressions from the images of running or walking at the time of the pandemic when this can have a soothing and calming effect.   ...

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German Radio started on Dec. 22, 1920. Astonishingly private Germans were not allowed to listen to the broadcasts till 1923 when the ban from the Treaty of Versailles was lifted. And the radio programs came under the Ministry of Posts, the Reichspost. It was a great relief to Germans to listen to radio programs, plays and music on radio, and liberating at the time because of the economic hardship and inflation. At the beginning in 1923 467 listeners and end of 1923 1 million listeners, on to 4 million paying subscribers, and 4 million non paying ones by the end of the decade. New genre was the radio play, also composers and music, and football games. Add to this on location reporting by journalists in 1929. A picture is shown of the "Nauen" broadcasting station in Brandenburg in 1919.

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Germany's furlough scheme is called Kurzarbeit. About 10.1 million workers are signed up for the scheme with about 5.6 million actually using it because they are working shorter hours than normal. Under the scheme about 60% of workers earnings are normally replaced with government aid with contributions from companies. For the pandemic the German government increased benefits to cover 70%-80% of lost earnings if a worker has lost over 50% of working hours. It cost about 9 billion euros and payments are made by the German Employment Agency. This scheme is being extended from the initial 12 month period to 24 months. A similar scheme in Britain that ends in October covered 80% of earnings for workers lost earnings up to 2500 pounds a month, at a cost of 35 million pounds up to August for 9.5 million employees at the peak. The British scheme is not being renewed. The U.S. has its own program of payments and unemployment insurance, yet unemployment is higher in the U.S. In Germany it was 6.3% in July, a moderate increase.  ...