Maybe now people can see a connection between the incoming flood of refugees, mostly young able-bodied males fleeing poverty, and the crisis Germany faces: It’s own existence and control of Europe’s throne.
WITH the biggest economy in Europe, Germany is the glue that underpins the eurozone but it could soon come unstuck.
The country’s power is set to unravel thanks to a toxic mix of misguided policies and demographics, according to one analyst.
Germany this year dropped below Japan to have the lowest birth rate in the world.
For every 1,000 people in the European country, just 8.2 babies are born a year.
Germany has one of the highest basic state pensions in the world and it needs a lot of people in employment and paying tax to keep it going.
However, the population is quickly becoming extremely top heavy, with fewer and fewer young workers to support the increasing older population.
This could lead to a huge financial crisis for the country and subsequently the whole of Europe, according to Harry Dent, a top America’s economic forecaster and analyst.
Speaking at the Elite Investor Summit, he said: “This will be the big surprise of the next few years.”
“Germany has a steeper drop in the next seven or eight years in spending demographically than Japan had in the 1990s.”
“Germany is supposed to hold together the Eurozone. Everyone thinks Germany is the strong country – they have weaker demographics even than Southern Europe.”
He added: “They don’t have another generation to come along and buy those houses when the old people are dying or buy more cars than ever before – they’re won’t be enough of them.”
However, there are other issues that are exacerbating the problem.
At the same time, the economy is on course to take a huge hit from the Volkswagen emissions crisis, which the impact not yet fully known.
The car manufacturer is one of the country’s largest employers, with more than 270,000 jobs in its home country and even more working for suppliers.
It is estimated that one in six German jobs depends on the car industry, as well as 17.9 per cent of the country’s exports, making the financial powerhouse of Europe even more vulnerable.
Full article: Germany heading for financial MELTDOWN set to sink the EU, says leading expert (Express)