Germany’s economic model is sputtering. So are its banks
Politicised governance and a diminished private sector undermine competitiveness
Germany’s economic model is known for close relations between bosses and unions; the Mittelstand, the country’s world-leading manufacturing firms; and the political system’s federalism, which spreads prosperity widely. Another ingredient is less renowned but no less fundamental: the country’s banks, many regionally focused, provide long-term funding to Mittelstand companies nice and cheaply.
This article appeared in the Finance & economics section of the print edition under the headline “Broken banks”
Finance & economics September 2nd 2023
- How can American house prices still be rising?
- Which country’s genius deserves the €200 note?
- Europe’s economy looks to be heading for trouble
- Germany’s economic model is sputtering. So are its banks
- High bond yields imperil America’s financial stability
- China’s shadow-banking industry threatens its financial system
- How will politicians escape enormous public debts?
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