Wolfgang Münchau is a senior, widely-respected journalist whose views on Europe will be familiar to many. His very readable, succinct and thought-provoking account of Germany’s economic predicament pre-dates the fall of the Scholz coalition, the post-election easing of the debt brake and of course the Trump tariffs, but these more recent events if anything make it more, not less relevant.

There are no tables, charts or equations. The style is polemic and anecdotal rather than academic: the author’s opinion is clear. He diagnoses an “underlying malaise” (p9) born of complacency, poor judgement and missed opportunity, and offers not a policy manifesto but a straightforward “how and why” account of what has happened. “The German economic model has come unstuck…” (p9).

After a scene-setting prologue there are chapters on: finance; industrial strategy; energy policy; the emergence of China; fiscal policy; labour and immigration; and an epilogue reviewing recent political developments (up to but not including those above).

In summary, he argues that: Germany’s state-entwined financial system has stifled innovation but also taken irresponsible risks; government and business have been slow to embrace digital technology, and too reliant on established industrial giants such as the ICE-focused auto companies; energy supplies are insecure, expensive and environmentally unsustainable; the economy is overly-reliant on China both as a customer and supplier; the debt brake is “probably the worst fiscal rule by any government anywhere” (p167); there is an ongoing skill shortage but a reluctance to welcome skilled immigrants; and finally, “The political landscape has become too fractured to enact the reforms needed for Germany to end the structural slump.” (p210 – and again, he is writing before the recent inconclusive election, which arguably makes his point).

In his account, the two big political parties seem equally to blame. Münchau reminds us that the debt brake was created by the SPD, while those links with China were embraced by Merkel’s administration. The cosiness of the relationship between politicians and business revealed by many of the anecdotes may come as a surprise to some readers (it did to me). Münchau’s focus on the product range – what Germany makes, and why – is welcome, and contrasts with more superficial commentary.

My reservations concern the genre, and the leaning towards sensationalism which his trade requires (Münchau has not exactly been on the “muddle through” side of the EU debate). Also, I find labels such as “neo-mercantilism” and “ordo-liberalism” unhelpful: once you have those hammers in hand, everything looks like a nail.

The big picture, “decline and fall” format is seductive, and my German colleagues are certainly pretty downhearted of late. However, the literature on economic performance has a mixed track record, and local analysts (Münchau is German) tend often to sell their economies short. Germany is not the only country to be experiencing structural problems: a page of macro statistics would put it in the top half of the big-country league table for all-round macro performance this last decade.

Indeed, it’s not that long since Germany – with its far-sighted Mittelstand and sensible bank finance – was being held up as the economy the UK should be emulating. Its edge was overstated then, and its weaknesses may be overstated now.   

Overall, though, the book offers an informal but accessible and useful overview of Germany’s recent economic history, and the issues it faces: I enjoyed and learned from it.