Germany in decline

The Federal Republic's reputation has suffered badly over the past 10 years.

Sebastian Terfloth/ Wikipedia Commons

A decade ago, Germany was on top of the world. In the middle of a second Wirtschaftswunder, unemployment had hit record lows while the economy was booming on the back of strong exports into the EU single market, to China, and to the US. The car industry dominated global markets, pharmaceutical firms were swallowing up international competitors, and a host of medium-sized firms were expanding their operations across the globe.

The public trusted their leaders to make the right choices, and the governing class, in turn, trusted the public to act like adults.

Germany appeared to have found the Goldilocks formula for public life. A responsible state kept its public finances in check while managing to provide high-quality public services. Crime was low, even while the police and intelligence services worked with a light touch. Workers were given time off for childcare, a generous minimum wage, and ample public holidays. Corporate responsibility seemed to …