Study Identifies Four Key Factors Behind Germany's Current Crisis

Germany is facing significant political and economic challenges, attributed to long-standing issues that have been overlooked, according to an international research team. The findings, part of the Berggruen Governance Index, indicate that merely changing the ruling party will not resolve the underlying problems.

Researchers from the University of California (UCLA), the Berggruen Institute, and the Hertie School in Berlin collaborated on this study. They argue that Germany's complacency during the Merkel era has left the country unprepared for current challenges.

Edward Knudsen, one of the study's authors, highlighted that the structural roots of many of Germany's problems are concerning. He emphasized that addressing these issues will require time and significant structural reforms rather than just political changes.

The report identifies four primary causes of Germany's current predicament, with the missed opportunities of the 2010s being particularly critical. During this decade, Germany had ample resources, time, and stable political leadership, yet it chose to remain passive instead of preparing for future disruptions. This lack of foresight has resulted in a diminished capacity to cope with crises.

Firstly, the study points to insufficient investments that have hindered growth and exacerbated inequality within the country. Secondly, migration presents a complex and unresolved issue for Germany. While immigration is essential for economic growth in an aging society, it has also become a major source of political tension.

Additionally, the research indicates that Germany has developed an excessive reliance on foreign nations, particularly in energy supplies from Russia. The recent economic stagnation has further weakened political consensus and social cohesion, compounding the nation's troubles.

This analysis is backed by extensive data and various studies, providing insights measured on a scale of 0 to 100. Notably, the index for democratic control has declined from 100 in 2011 to 93 in 2021, reflecting growing concerns regarding governance.