Since the fall of the Berlin Wall 25 years ago, Germany has established itself as
Europe’s largest economy.
But their economy is also starting to show some signs of
decline, and there are fears that this could lead to a recession.
So what impact is this
dip having on Germany?
And how powerful is the country overall?
Well, the short answer is they are very powerful, with some potentially growing
weaknesses.
For one thing, German may have to cut back on their military.
They
currently have the world’s 7th strongest military force, employing 183,000 active
troops.
That’s behind other European countries like France and the UK, and quite a
ways behind the USA and China, but it’s still a sizable amount.
They’re also at the
forefront of developing military technology.
The problem is that maintaining this military
and developing new technology is an expensive endeavor that Germany may not
be able to afford.
According to a recent leaked report, “Only one of [Germany’s] four
submarines is operational” and “just seven of the German Navy’s fleet of 43 helicopters
are flightworthy.”
They’ve also had problems with broken down aircrafts.
This recently stopped troops
from returning home from Afghanistan and hindered the nation’s effort to join the fight
against both ISIS and Ebola.
German defense minister Ursula von der Leyen has admitted that the country’s military
is facing equipment shortages so severe
that it cannot meet its NATO commitments, which could be a serious blow to their status
in Europe.
So, why is the largest economy in the EU unable to afford something as simple as
vehicle repairs?
Well, their economic growth has slowed for a number of reasons.
They have
Europe’s most ambitious renewable energy plan, which has yet to offer any clear
financial returns.
They’ve also had slower export growth in China than expected, and
are unable to continue their normal trade with Russia because of sanctions.
Germany is
reportedly losing over $100 million euros this year alone, due to a now-canceled arms
deal with Russia.
Despite all of that, Germany’s economy is still strong and they have enormous
political power.
They’re a founding member of the EU, a contributing member of NATO,
and they’re extremely active in the United Nations.
So, even if Germany were to find
itself in a recession, it would still maintain its political place as the leading power in
Europe.
It would just have to tighten its belt a bit, to stay there financially.
To find out more about the Russia-Ukraine conflict and the effect it’s having on
Europe and the rest of the world, please click to watch the video “How Powerful is
Russia?”