1-High energy cost for Germany’s industrial base.
2-Bad demographics requiring large immigrant influx.
3-Huge future social entitlements that are unfunded and will create huge national debt that will have to be financed.
There are cases to be made for long structural issues and mismanagement, but the answer to the country’s current malaise lies in the wreckage of the Nord Stream pipelines on the bottom of the Baltic Sea.
the loss of the cheap and reliable pipeline gas from Russia blow up the German economic model
A quarter of the 84 million Germans’ income is insufficient to make ends meet.
The labor shortage could become a serious structural problem for Germany. Because what has been predicted for decades is now becoming reality. The baby boomers (born between 1955 and 1969) are gradually leaving the labor market and retiring. In 2036, the last baby boomers will be retired. This means that the labor market will lose a very large number of qualified workers.
The baby boomers have acquired extensive social security entitlements during their working lives that cannot be financed with the given taxes and contributions. The unfunded benefit claims can be understood as hidden or implicit public debt. Without countermeasures, these implicit debts would successively turn into explicit debts over the next years and decades.