German of the day: Insolvenz

That means insolvency. As in bankrupt.

As in Germany’s current coalition government under Friedrich Merz.

“Hardly any of the urgently needed structural reforms that were announced have been implemented. There is no overall plan for concrete reforms to promote growth and competitiveness. Germany’s position as a center of industry is under existential threat.”

Other than that though, the current German government is doing a great job.

All the news that’s fit to print…

And any flavor you want, simultaneously.

Germany is toast! Germany doing better! Whatever.

German ‌industrial production ‌fell unexpectedly ​in March, decreasing by 0.7% ‌from ⁠the previous month, ⁠the federal ​statistics ​office ​said on ‌Friday.

Analysts polled by Reuters had predicted ‌a ​0.5% ​rise.

Deeper ties to China?

Smart move, Germany (Schleswig-Holstein).

Reminds me of those deeper ties to Russia right before the war in Ukraine broke out.

German state eyes deeper China cooperation in energy, innovation – Significant potential exists to deepen cooperation between the northern German state of Schleswig-Holstein and east China’s Zhejiang Province, particularly in energy transition, hydrogen and advanced manufacturing, according to Daniel Guenther, minister president of Schleswig-Holstein.

His remarks come as the two regions mark 40 years of partnership, with both sides seeking to expand ties despite an increasingly complex geopolitical and trade environment.

We can’t afford this anymore

We couldn’t in the past either, of course…

But now we really can’t afford this anymore.

German health minister announces billions in cutbacks – The comprehensive reform package aims to plug a multi-billion-euro hole in Germany’s expensive healthcare system. The reforms include mandatory second opinions for costly surgeries and no more homeopathy.

Rebound?

More like a dead cat bounce.

German Economy Grows by 0.3% in Q4, Stats Office Says – The German ​economy ‌grew ‌by ⁠0.3% in ⁠the fourth quarter ​of ​2025 compared ⁠with ⁠the ⁠previous quarter, the ​statistics ​office ⁠said ⁠on Wednesday, confirming its ⁠preliminary reading.

Meanwhile… German auto exports to China plunged by a third in 2025, economic institute says.

Germany + China = Shock

For Germany.

“The China shock is here,” the German Economic Institute declared last year. Indeed, 2025 will go down as the year in which it could no longer be denied. Germany’s trade deficit with China reached a record level of €87 billion—an increase of €20 billion compared to the previous year. And German exports to China continue to be in free fall. The United States, France, the Netherlands, Poland, and Italy have by now become more important export markets for Germany than China.

Maybe not the best top trading partner to have.

A Tale of Two Headlines

“German business lobby warns of unfair trade practices by China” vs. “China overtakes US to become Germany’s top trading partner.”

China has overtaken the US as Germany’s most important trading partner, according to figures released by Germany’s Federal Statistical Office (Destatis) on Friday.

The sum of exports and imports between the two countries last year totaled €251.8 billion ($296.6 billion), a 2.1% increase, according to Destatis.

China was Germany’s most important trading partner from 2016 all the way through to 2023. In 2024, the US briefly held the title.

German Chancellor Friedrich Merz is also set to visit China next week, where he is set to discuss trade and other topics.

The next 20,000 jobs gone

Could it be our ridiculously high energy costs? Nah.

Germany’s industrial engine sputters as Bosch axes 20,000 jobs – Rising unemployment rate piles pressure on Chancellor Friedrich Merz’s government.

German industrial giant Bosch on Friday confirmed plans to cut 20,000 jobs after profits nearly halved last year, underlining the mounting strain on Germany’s once-dominant manufacturing sector and increasing the pressure on politicians in Berlin to find a solution.

Official data released Friday also showed Germany’s unemployment rate, unadjusted for seasonal factors, rising to 6.6 percent — the highest level in twelve years. The number of unemployed people surpassed three million in January.

There’s “critical”

Then there’s “very critical.”

Then there’s Germany critical.

Merz issues business SOS in letter to allies – Chancellor Merz has told coalition politicians the situation in several key German businesses is “very critical.” He said the government must prioritize improving areas like energy and labor costs in 2026.