The causes of Germany’s problems can be summarised in one sentence: “The Germans fear the future and no longer want to work”

Germany’s current situation is paradoxical on two counts: All economic agents (the government, households, companies) save too much (the savings of some are not a substitute for the dissaving of others), which reveals Germany’s fear for the future and, moreover, stops it from preparing for it (insufficient public investment, and also insufficient corporate investment in the sectors of the future); Productivity gains (per capita and hourly) have become very low, despite companies’ automation and effort to innovate as well as the high labour force skills. This can only reflect a spurning of work among Germans, which, during a time of rapid wage growth, is leading to a sharp decline in Germany’s cost competitiveness.