from NoTricksZone
Author: P. Gosselin
The failed socialist green experiment. Economist warns German economy 'on edge'… 'further decline'
Hat Tip: Blackout News
Despite early promises of a prosperous green economy from the Socialist Green governments of Olaf Scholz and Robert Habeck and earlier governments led by Merkel's CDU, sentiment among German businesses continues to sour significantly.
Germany's online FAZ reported that the Ifo business climate index fell to 85.7 points in August 2024, down from 87.4 points last month. Pessimism is spreading and deepening.
This is the lowest sentiment level in three years
“The current economic downturn is particularly pronounced, with the Ifo business climate index falling again, which has many economic experts very confused. One thing is certain: the economy is in a serious crisis,” Blackout News reported. And: “No one can say exactly how much the German economy will fall.”
High energy prices, poor business environment
The current socialist green government has screwed things up and now doesn't know how to proceed further.
Blackout News further commented: “The challenges are complex and there are no signs of rapid improvement in sight.” “All in all, it is clear that the German economy is currently in a serious crisis.”
Many factors contribute to the downbeat business sentiment. On top of that are high energy costs, which are among the highest in the world – thanks to Germany's failed attempts to switch to green energy.
The stress of war and terrorism
Additionally, the country’s massive regulation is detrimental to free enterprise. This, coupled with the escalating war in Ukraine, further suppressed market sentiment.
Another discouraging factor: the uncontrolled influx of refugees from countries plagued by terrorism and war into Germany, all of which leads to a rapid rise in violent crime, as happened recently in Solingen. Citizens fear for their safety and lose trust in the government's ability and willingness to protect them.
Not only has business confidence plummeted, so has confidence in government. Unfortunately, real change will remain elusive for the foreseeable future.
Germany was plunged into pessimism and fear, with no hope in sight.
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