Germany's Economic Myths Debunked: Rethinking State-Business Ties for Economic Security

Abstract

German economic policy has been in flux since the supply chain shocks of the pandemic and the Russian invasion of Ukraine. Partners in Europe are keen for reassurance that they can rely on Germany in a geopolitical crisis, even when its commercial interests are at stake. Germany is aware of this but has been guarded about its intentions and has merely signalled what it thinks partners want to hear. This runs counter to Germany’s reputation as a supporter of constructive business ties, an open and secure EU, global multilateral bodies, and its steadiness and reliability as a partner.