(Bloomberg) — German Chancellor Olaf Scholz faces intense pressure from members of his ruling coalition to step up deliveries of heavy weapons such as tanks and fighter jets to help Ukraine fight Russian troops. After initiating an historic reversal in Germany’s previously frugal defense policy in the early stages of the war, Scholz has since appeared hesitant to go beyond initial supplies.
Risk too high
February 2022. Politicians and business leaders call for alternatives to Putin’s pipelines.
The country gets a whopping 55 percent of its gas imports from Russia. With the crisis triggered by Vladimir Putin’s belligerence toward Ukraine prompting renewed questions about the reliability of that supply, politicians and business leaders have begun calling for the country to urgently find ways to diversify its energy mix.
“Well. Welcome to the brave new world where Europeans are very soon going to pay €2.000 for 1.000 cubic meters of natural gas!” Dmitry Medvedev, the former Russian president and prime minister who is now deputy chair of the country’s Security Council, tweeted in reaction to Scholz’s move. Just to make sure the message got tweeted in German, too.
Germany puts hold on North Stream 2
For weeks the German government was reluctant to commit to including stopping North Stream 2 as a key element in sanctiones against Russia should it invade Ukraine.
BERLIN, Feb 22 (Reuters) – Germany on Tuesday halted the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to Germany, after Russia formally recognised two breakaway regions in eastern Ukraine.
Europe’s most divisive energy project, worth $11 billion, was finished in September, but has stood idle pending certification by Germany and the European Union.
The pipeline had been set to ease the pressure on European consumers facing record energy prices amid a wider post-pandemic cost of living crisis, and on governments that have already forked out billions to try to cushion the impact on consumers.
Swabian Hausfrau
“One should have just asked a Swabian housewife,” said German Chancellor Angela Merkel when asked about the Lehman Brothers collapse in 2008.
In Germany, the traditional image of a housewife in the region of Swabia has typically been a positive one: a woman who is wise with her family’s money. Yet is there anything behind that stereotype?
A funny comment in YouTube: “I’d like to see a Swabian and a Scotsman plan a holiday together. I can only imagine the depths of destitution they would stoop to.”
Germany’s future? Look at its cars
A well-done description of the current – September 2021 – situation in Germany. By the economist. Using the German automobile industry as a window into the wider challenges to the German economy and to German society.
It’s bottom-line question is whether the German people are capable of responding to the challenges of today and the near future.
Careful, cautious, change-averse
Oliver Nachtwey – Professor of Sociology at the University of Basel in Switzerland – and a sharp-eyed observer of German politics wrote this guest essay in the New York Times the day after the September 26, 2021 federal elections in Germany:
“It could have been a fresh start. In the face of a number of pressing challenges, rising inequality, run-down infrastructure and spiraling climate change among them, the election was a chance for the country to chart a better, more equal course for the 21st century. Instead, Germany is stuck. Ms. Merkel may be leaving. Yet the Germany she cultivated — careful, cautious, averse to major change — will carry on as before.
The campaign gave us early clues. Typically, candidates for the highest political office seek to distance themselves as much as possible from incumbents, to demonstrate the superiority of their vision for the country. But in Germany, the main candidates vied to imitate Ms. Merkel’s centrist political style. It delivered four successive electoral victories, after all.”
Mr. German man loves insurance
An American woman. Married to a German man. About how her husband, and his friends, are enthusiastic about insurance. And about how shocked they were to hear that she, and her American friends, never even heard of such kinds of insurance.
Warning ! This woman is a youtuber. And an American on top. So, she is more than a bit animated. And frankly, she could have made her points in about two minutes instead of seven and a half.
Germans think systematically
Germans think systematically. They formulate their understanding of a decision to be made in a very broad and interconnected context. Therefore Germans do not always consider it helpful to take complexity and, as Americans say, “break it down” into its component parts. They aim to do the opposite, to see particulars in their interrelationships. They look for patterns, strive to understand complexity as a whole, as a system.
Business failure is Personal Failure
The Handelsblatt Global Edition from April 23, 2015 reported: Philipp Gloeckler’s business idea was a failure, and he doesn’t mind admitting it. He had what he thought was the perfect concept, an impeccable business plan and great press coverage. Yet, his app, Whyownit, was a disaster.
This is how he found himself at the F***UpNight event in Berlin, a get-together where failed start-up entrepreneurs pick through the bones of their mistakes in the hope that they can do better next time.
“Business failure is often equated to personal failure in this country,” said Rolf Sternberg, a researcher at Leibniz University in Hanover, who recently co-authored a study on young entrepreneurs. “We would win a lot if we would accept failure as a new chance,” he added.
Other than SAP, the software giant founded in 1972, no German tech company has made it onto the global stage. Instead German entrepreneurs are better known for their pursuit of perfection, and finding success within established structures, such as the car industry.
“I am convinced we need to talk about mistakes,” said Béa Beste, whose toy app, which allowed users to subscribe to a toy delivery service for kids, collapsed with the loss of all her investor’s capital as well as her own €300,000 ($322,000). “The worst mistake is being afraid of mistakes,” Ms. Beste said.
Venture capital is scarce in Germany’s risk-averse, conservative economy, so entrepreneurs usually turn to bank loans for funding. But if their business fails and debts are called in, they must go through a lengthy insolvency process which can demand up to six years of “good conduct” before the slate is wiped clean.
All the way or not at all
The appreciation that Germans have for individual competence and their aversion towards incalculable risks sometimes set the condition of a certain degree of caution used when working with innovations.
Therefore, it fits the bill that German companies always approach the execution of updates and improvements in a cautious and well thought-out manner. All of the pros and cons must be carefully weighed, and all influential factors taken into consideration before a critical decision is made.
In this case, a qualified expert will often be called in to assist. “Professional quality management is often the condition for the commissioning of tasks. This is often bound together with unnecessary effort, especially in the case of small businesses; often the incorporation of external consultants is better”, explained an expert from the Chamber of Crafts in an article.
And so there exist a plethora of external experts, consultants, institutions, and established norms for German business owners to turn to in case they should lose perspective in the tangle of modern innovation.
These exist to help to make well-founded and analytically grounded decisions. It has even developed into its own field of study at many technical and business colleges: studies to the systematic approach of solving problems and to the development of complete solutions have begun to fill textbooks and lesson plans.
These approaches help to calculate multiple types of risk in advance, thereby countering the deeply rooted nervousness that comes together with risks and unforeseen situations.