Biden doesn’t just want to weaken Russia
All of Europe is suffering as a result of the energy crisis, but for the continent’s largest economy, this is more than just an economic crisis — it’s an existential one. Once hailed as Europe’s economic powerhouse, Germany is now being labelled its “weakest link”.
A recession next year is now considered almost certain; industrial production is down 9% on last year; inflation has soared to double digits for the first time since the Second World War. Given Germany’s deep-seated inflation-phobia, all this is problematic enough. But even more traumatic for the country is the fact that Germany is now running a negative trade balance — the first time this has happened in more than 30 years. This is a very tough pill to swallow for a country where export-led growth is more than just an economic model — it’s part of its national identity.
