Hey, wanna stay in the loop? No fancy forms or annoying pop-ups, just drop yourself into the German economy rabbit hole with myFT Digest hitting up your inbox like an old friend. You know you wanna.
So, Germany’s economy. Picture this: the powerhouse of Europe — the big cheese, the head honcho — is, believe it or not, kinda running on fumes. It’s like when you plan an epic road trip and realize halfway through you forgot to gas up. Same vibes right now with Deutschland.
Forecasts went from “Hey, we might see a little rise” to “Whoops, actually, nada.” Zilch growth for this year. Their factories are like, “Oh man, Trump’s trade wars are really harshing our vibe.” And yes, it’s still dragging on from last year where things shriveled a tad, GDP-wise.
Enter Friedrich Merz, stage right. Our soon-to-be chancellor’s got big plans, like “Let’s sprinkle some money on those roads and bridges” and “Oops, did I spill some tax breaks over here?” Wishful thinking maybe, but Merz is more “go big or go home” kind of guy. Yet, Trump’s friendship style — think tough love but with tariffs — is totally the elephant in the room, threatening to slam doors on exports.
Imagine Trump just dropped a 20% bombshell of tariffs, like “Hey Europe, eat this!” Then, like an unexpected plot twist, he dialed it back to 10% while they chat over Java about “What’s next?” Germany’s biting their nails till they hear the end of this saga.
Oh, and the IMF did a little copycat move too, also pegging 2025 growth at nada. It’s like a global déjà vu moment, if you will.
Meanwhile, Clemens Fuest from Ifo, a guy whose job it is to assess vibes, goes, “Storm’s brewin’, folks.” His Climate Index says businesses are nervous like cats in a roomful of rocking chairs. Yikes.
And that’s the scene for today. Keep your eyes peeled, ’cause this story’s still kicking around.
