A Lesson for America: Green Policies Crush German Economy
8th March 2024
Germany’s gross domestic product has been falling since the third quarter of 2022, causing fears of the first two-year-long recession since the early 2000s. German farmers are openly protesting new climate regulations that would raise the price of diesel fuel, vital for tractors and farm machinery. This discontent is mirrored by the general public, which is opposed to higher energy costs that drag down the economy. Recent polls show a significant shift in public opinion that’s increasingly opposed to the coalition government.
Unlike the U.S. House of Representatives or the Senate, where invariably one party secures a ruling majority, multiple German parties must form a coalition to reach the required 50%+1 majority threshold. Currently, the Green Party, the Social Democratic Party, and the Free Democratic Party comprise this coalition. The latest polls show all these parties polling far below their 2021 election results while the more right-leaning parties, such as the Christian Democratic Union and the Alternative for Germany, are surging in popularity.
The recent economic slowdown has resulted in widespread political discontent, and the core of the slowdown has been disastrous energy policy.