Germany’s economy in trouble – level 3
21-02-2025 07:00
Germany’s economy has been struggling for five years. The main reason is the energy crisis caused by Russia cutting off its gas supply.
Germany depended on cheap energy, leading to much higher costs for industries. Renewable energy is not developing fast enough to replace gas. Another issue is China, which has moved from being a key customer to a direct competitor. Chinese companies now produce cars, solar panels, and industrial goods, reducing Germany’s market share. Germany also failed to invest in infrastructure, such as high-speed internet and railways. Budget rules have limited public spending, making improvements difficult.
Additionally, companies face a major worker shortage, especially in technical fields. Fewer students study STEM subjects, and immigration rules slow down hiring foreign workers. Finally, excessive bureaucracy makes economic growth harder. Approvals for projects take too long, and businesses struggle with unnecessary paperwork. Germany’s government must address these problems to improve its economy.
Difficult words: budget (a plan to show how much money you will earn and how much you will be able to spend), shortage (not enough of something), bureaucracy (too many rules and paperwork).
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Which factors have led to higher industrial costs and slowed economic progress, considering issues such as energy supply problems, inadequate renewable alternatives, growing competition from Chinese companies, insufficient infrastructure investments, workforce shortages in technical fields, and burdensome bureaucracy?
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