The Wall Street Journal

Why Germany’s Confidence Is Shattered and Its Economy Is Kaput

Historians and economists say risk-averse leadership is holding back Europe’s largest economy

Old steelmaking equipment in Dortmund commemorates the area’s industrial past. Germany’s economy has relied on analog technologies, but that approach is falling behind. Photo: Martin Meissner/Associated Press

BERLIN—A decade ago, Germany was the model nation. 

Its economy hadn’t just withstood the ascendance of China; it was thriving in its wake. Its balanced public finances stood out in a world of huge government debt. And while British and U.S. lawmakers were caught up in the culture wars, German politicians continued to practice the art of compromise.

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