The truth about the new Germany pace

The author

Sebastian Matthes is Editor-in-Chief of the Handelsblatt.

The war in Ukraine has brought incredible suffering. It has torn families apart, killed thousands and forced millions to flee. And this war undoubtedly changed the way Germany was viewed.

The peaceful European middle power, which wanted to mediate between the various political blocs and which always kept its options open, suddenly appears to be quite egotistical. As a country that outsourced its energy production to Russia, tied its prosperity to China, and delegated national defense to the United States. A country that has lived in a kind of borrowed prosperity for many years.

Much has been written about the supposed naivety of German foreign policy, but that is a trivialization of history, it was more the selfishness of an entire generation – both in politics and in business.

Germany is getting more and more complicated

A year after the beginning of the war, it is evident that Europe and Germany in particular are still struggling with the new situation. “The pace of German decision-making lags dangerously behind the pace of escalation in Russia,” says historian Heinrich August Winkler in a major Handelsblatt interview.

The tugging in the federal government over tank deliveries, the inability to speak with one voice, and the obvious impossibility of European armament projects bear witness to this. The same applies to the handling of all those challenges by politicians that result from Germany’s departure from its previous business model. That’s why Chancellor Olaf Scholz was met with incredulous amazement at the World Economic Forum in Davos when he spoke of a new speed in Germany, by which his government wanted to be measured.

The federal government actually had floating LNG terminals connected in record time to secure the gas supply. But that’s about it. For many, the mantra of the new Germany speed should sound more like auto-suggestion, as our big report for the weekend shows. While Scholz speaks of a new pace, this country is becoming more and more complicated – whether with the property tax return, building applications or armament projects.

>> Read about this: The new Germany speed – why it so rarely succeeds

Although announced a year ago with the highest priority, only a fraction of the 100 billion euros in special funds for the Bundeswehr has been used. Scientists are already talking about a “slow-motion turnaround”. Or let’s take the topic of e-mobility: The construction of charging stations, the basis for the federal government’s ambitious plans, is also far behind the plans, because applications for approval can sometimes be in the offices for two years.

The expansion of renewable energies is also progressing alarmingly slowly. Anyone who has a new solar system screwed onto their factory building sometimes waits years for it to be connected by the local grid operator. There is speed elsewhere. Despite the tense situation on the energy markets, the remaining nuclear power plants in Germany are going offline. However, it is questionable whether this Germany speed serves the European energy supply.

photovoltaic system

Scientists are already talking about a “slow motion turnaround”.

(Photo: dpa)

All of this paralyzes companies. A year after the start of the war, they are not only confronted with rising energy costs, uncertainties in their supply chains and a fundamental transformation of the business, but also with completely overwhelmed administrations. If you ask them what their biggest problems are, energy, inflation, war, a shortage of skilled workers or supply chains come before the ever-changing rules and the sluggish planning and approval processes.

Of course you have to be fair. When it comes to putting together aid packages, the federal government has actually set a record pace. However, such programs usually do not trigger much more than short-term consumer fireworks.

The aid programs are only of limited help in modernizing the economy. This requires political will and a courageous reform strategy. A jerk, if you will. But that it will come is more questionable than ever. Because if you look at the last decisions of the federal government with a view to the big questions of the future, then there is little jerking and jerking all the more.

More: Year of the turning point – Twelve graphics showing how the war changed Germany

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