Germany, the former economic powerhouse, is facing massive industrial layoffs. Bosch plans to cut 10,000 jobs due to declining demand in the automotive sector, while Volkswagen is shutting down factories and slashing thousands of jobs. Industrial output dropped 1% in October, marking a dramatic reversal as Germany’s energy policies and industrial reliance falter, earning it the unwelcome title of the “sick man of Europe.”
The EU economy isn’t just slowing – it’s cratering.
Germany’s layoffs. France’s factory closures.
High energy prices.This isn’t a downturn – it’s the beginning of the end for Europe’s economic dominance. pic.twitter.com/vkVlZCpDk3
— GoldSilver HQ (@GoldSilverHQ) December 13, 2024
France is burdened by a 6% fiscal deficit despite having the highest tax burden in Europe. Political paralysis exacerbates the crisis, with frequent no-confidence votes stalling government reforms. Economic instability is evident, as factories like Michelin shut down, costing thousands of jobs and further weakening the economy.
Italy and Spain face dire demographic challenges, with plunging birth rates creating a pension and healthcare crisis. Italy’s healthcare system is on the brink of collapse, with strikes and severe underfunding, while Spain is struggling with pension reform, supported by unions but hindered by broader economic woes.
High energy prices compound the EU’s economic turmoil. Dependence on costly imports and a slow transition to renewable energy have driven energy costs to two-decade highs, crippling households and industries. These price shocks highlight Europe’s vulnerability and erode global competitiveness.
The EU’s share of global GDP has plummeted, falling from 90% of the size of the US economy in 2008 to just 65% today. This steep decline reflects deep structural problems, including an aging population, political fragmentation, and unsustainable debt levels. Analysts draw parallels with Japan’s stagnation in the 1990s, warning of a similar fate.
This isn’t a temporary downturn—it’s a systemic crisis. Without aggressive reforms to address energy dependence, demographic collapse, and industrial decline, the EU risks a prolonged period of stagnation and economic irrelevance.
Europe‘s largest economies:
Germany – decided to get rid of its industry, sick man of Europe
France – 6% fiscal deficit despite highest tax burden in Europe, political paralysis
Italy & Spain – heading into pensions and healthcare benefits crisis due to collapsing demographics pic.twitter.com/ZDaVUPVnLv
— Michael A. Arouet (@MichaelAArouet) December 12, 2024
This summarizes things in Europe really well pic.twitter.com/vii4fHpvaE
— Michael A. Arouet (@MichaelAArouet) December 13, 2024
https://t.co/XUuER0YqIU pic.twitter.com/uHimOQjUS9
— Michael A. Arouet (@MichaelAArouet) December 11, 2024
Remarkable overview. Germany hosts almost twice as many refugees as France, Spain and Italy combined.
Isn‘t it cute that green socialist politicians seriously claim that there is no welfare pull factor for immigration? It must be the weather why so many immigrants choose Germany pic.twitter.com/TkvqR172lS
— Michael A. Arouet (@MichaelAArouet) December 13, 2024
Sources:
https://www.personneltoday.com/hr/bosch-to-axe-up-to-10000-jobs-in-germany/
https://finance.yahoo.com/news/german-giant-bosch-workers-left-113722730.html
https://www.aa.com.tr/en/economy/germanys-industrial-output-unexpectedly-declines-in-october/3415892
https://markets.businessinsider.com/news/interestrates/german-industrial-production