Until recently Germany appeared to be a paragon of economic and political success. Angela
Merkel was widely seen as the true 'leader of the free world' and Germany's export-driven
economic model seemed to deliver prosperity. Recent events have called this view into question
as Germany's dependence on Russian gas has become a major liability. Wolfgang Munchau argues
that the weaknesses of Germany's economy have in fact been brewing for decades. The
neo-mercantilist policies of the German state driven by close connections between the
country's industrial and political elite have enriched a small group of companies and
shareholders but done little for the majority: the result has been spiralling income
inequality. The dominance of industrial interests has left Germany technologically behind and
thus slow to adapt to the digital realities of the 21st century. It has also caused an
over-reliance on authoritarian countries such as Russia leaving Germany isolated and
vulnerable. This incisive analysis of the failures of Germany's business and political elites
from one of Europe's leading commentators will be a must-read for anyone interested in
contemporary geopolitics.
