The first signs of Germany’s austerity era

With industry weakening and spending rising, the government is starting to pass costs on to the public.

Dear Reader,

Here’s the big picture.

German companies are losing market share across the world as importers turn to cheaper Chinese products that appear to meet the same standards. After peaking in 2018, the value of German exports has been declining ever since. As profits fall, so too does the tax revenue the state can extract from them. At the same time…