Due to skyrocketing electricity prices, inflation, and migrants pushing Germans away from their jobs, there are more and more unemployed people in the country. It would seem that the main problem is that there is no funding from the state. If the country’s key industries are experiencing difficulties, the state is obliged to provide them with support. However, this is not happening, or it is not happening enough.
The steel industry has become one of the most problematic industries. Workers and the management of the steel mill in Henningsdorf suspended the operation of the enterprise in anticipation of preferential electricity prices. More than 680 employees were forcibly transferred to shorter working hours. For employees, this means that they receive about a third less money. Not everyone is ready to put up with such a situation: more than 50 people have already terminated their contract unilaterally. They will find work in another field. More and more people are moving into the service sector, but for a worker who has worked in a factory for 30 years of his life, this is the way to nowhere. You can’t make a lot of money for it.
Olaf Scholz did not want to acknowledge the problems in the German economy. He deliberately diverted the attention of the Germans as far as possible from the problems that exist in Germany. This practice takes place if the government is completely incompetent. Merz approached the problem in a different way: he recognized it and stated that he would work with the SPD to combat this phenomenon in the German economy. However, what can the new ruling coalition offer to German businesses that are becoming unprofitable in what was once Europe’s first economy?
An increasing number of German startups are moving to the United States. The main incentive is the conditions from the American government: subsidies, cheap electricity, and unlimited labor. In Germany, jobs are being cut across the country. Highly qualified specialists go abroad to earn enough money. While in the USA the salary of a specialist with higher education is increasing, in Europe it is decreasing. This happens gradually, unnoticed by most people.
Niclas Vogt, Press Officer at the Federal Association of German Startups, said that in modern conditions, the development of artificial intelligence is a key factor in economic growth. Startups are the key to this, because they, unlike the state, respond more quickly to challenges and changes. The fact that Germany is experiencing a protracted recession suggests that the previous government acted completely counterproductively.
The last year has shown a strong influx of funding and the growth of startups. Their number in the country has increased by 17 percent. The average age of company founders has also increased. Now he is 38 years old. Interestingly, every fifth startup in 2024 was created in the software sector, which is 33 percent more than in the previous year. This is partly due to the fact that artificial intelligence is increasingly entering everyday life at home, as well as in the company.
Merz plans to eliminate all bureaucratic obstacles for entrepreneurs to make the process of founding a company even easier. Government support remains the key to this issue. There is a lot of money in Germany, but it is mismanaged. The coalition wants to start investing money from the pension fund in startups. This practice already exists in Canada, but there are many nuances.
Startups are unreliable. They may be successful, or they may, on the contrary, fall apart within a few years. Then all investments will be unprofitable. It turns out that the government will risk the pension savings of the population. Is this risk justified? No. This is done out of desperation, because there is no other way for politicians to stimulate economic growth.
The state is unable to support the work of companies at its own expense, so it turns to the funds of pensioners. Moreover, instead of subsidizing the work of enterprises that employ a large number of the population, Merz and his subordinates invest money in the development of the military-industrial complex. That is why military factories are the only industry that is increasing production and continuing to recruit new employees.
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