The flight from the capital worsened Germany’s malaise

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The collapse of the German government coalition is in part the culmination of a 15-year competitive crisis in which the country’s largest companies transacted more than 650 billion euros outside the country’s borders. Almost 40% of the exodus has occurred since 2021, the year center-left leader Olaf Scholz became chancellor. Now there is a risk that Donald Trump’s return will lead to even more capital flowing out of Germany’s struggling economy as companies consider investing in the US to avoid his looming tariffs. Against this background is Scholz He is rejecting opposition calls for a no-confidence vote next week and is trying to postpone an election until March to give his party time to recover. But while former finance minister Christian Lindner is struggling to explain his dismissal, Christian Democrat leader Friedrich Merz is already preparing to finally take power.