Business Daily Media

The Times


.

Germany "rested on its laurels" too long, report finds

LOS ANGELES, USA - Newsaktuell - 31 January 2025 - High levels of governance have masked a slow decline in Germany, with political, economic, and social fractures "festering over years", a new scientific report released only weeks ahead of the February 23 parliamentary elections concludes.



On February 23, Germany elects a new Bundestag. The issue of migration plays a particularly important role, not least for supporters of the far-right AfD party - seen here at a demonstration in front of the Reichstag building in Berlin, the seat of the Bundestag, in 2022. (Photo by Christoph Soeder/dpa)
On February 23, Germany elects a new Bundestag. The issue of migration plays a particularly important role, not least for supporters of the far-right AfD party - seen here at a demonstration in front of the Reichstag building in Berlin, the seat of the Bundestag, in 2022. (Photo by Christoph Soeder/dpa)

"It has become clear that Germany rested on its laurels for far too long", the BGI Germany Report on the country's governance performance says. It is based on the Berggruen Governance Index (BGI) and was conducted by researchers from the Los Angeles-based Berggruen Institute think tank, the Luskin School of Public Affairs at the University of California Los Angeles (UCLA), and the Hertie School, a German university.

In their report "Germany 2025 - Slow decline in governance performance erupts into crisis of government as geopolitics worsen" the researchers conclude that the country's government and administrative systems have appeared increasingly sclerotic and hesitant to adopt necessary changes. Effective, often painful reforms are urgently needed, but political and economic constraints make them difficult to implement, the researchers write.

The 2024 BGI measures democratic accountability, delivery of public goods and state capacity on a scale from 0 to 100. It analyses the years from 2000 to 2021. According to the report, Germany has lost ground on all three measures, with structural problems festering since the "deceptively benign" years of the chancellorship of Angela Merkel (2005-2021). The Democracy Accountability Index score, for example, slid to 93 in 2021 from a near perfect 99 at the beginning of the century.

The data "suggests that some of Germany's state capacity and democratic accountability challenges were masked by economic growth, driven by the success of its export-oriented model during the 2010s", the report says. Chief among Germany's challenges are economic troubles that have worsened in recent years, largely stemming from a lack of public investment during that period in areas such as digitalization and transport infrastructure.

On February 23, Germans go to the polls early after the ruling three-party coalition consisting of the Social Democrats (SPD), the Greens and the liberal Free Democrats (FDP) collapsed in November. Intra-government fighting over how to get the country's ailing economy back on track was a main factor of the break-up.

At the same time, social trust is declining in Europe's largest economy. However, a possible new government under the conservative CDU/CSU alliance and its candidate for the chancellorship, Friedrich Merz, seems poised to exacerbate divisions rather than resolving them, the researchers say.

The economic difficulties heighten uncertainty and discontent, the report argues – with migration emerging as the other major flashpoint. Rhetoric on economic scarcity is used to highlight tensions over migration, which are exploited by both the extreme right and left. That debate has been exacerbated by a recent deadly stabbing in which a migrant facing deportation from Germany is the main suspect.

Yet immigration is essential to Germany's future growth, the BGI report says: "Any future government will have to attempt to reconcile anti-immigrant attitudes with the social reality of integration and the economic necessity of attracting foreign-born workers."

Merz is promising a hard line on migration in case of an election victory. Despite provoking outrage from other political parties, Merz on Wednesday (January 29) pushed through a vote in parliament on proposals for tightening immigration controls. "Current asylum and immigration policy jeopardizes the security of the people and the confidence of all of society in the state," the text of the motion by the CDU/CSU says.

The passed proposal includes a request to the German government to turn back asylum seekers at Germany's borders. But even more incendiary in German politics has been Merz's willingness to break long-standing taboos and use votes from the far-right Alternative for Germany (AfD) in order to pass the motion. All long-established parties in the lower house of the German parliament, the Bundestag, had previously said they would not work with the AfD, with many Germans alarmed at the rise of the party in recent years in a country still scarred by its Nazi past.

According to the latest opinion polls by the five major polling institutes, the conservative CDU/CSU is clearly in the lead, polling at between 28 and 34 per cent. Second comes the AfD with 19 to 21 per cent, followed by the SPD with 15 to 19 per cent. The current German Chancellor Olaf Scholz is a member of the SPD. The Greens are at 12 to 15 per cent in the opinion polls, while the FDP this time may not clear the 5-per-cent-threshold necessary to enter the Bundestag.

----------------------------------------------

This text and the accompanying material (photos and graphics) are an offer from the Democracy News Alliance, a close co-operation between Agence France-Presse (AFP, France), Agenzia Nazionale Stampa Associata (ANSA, Italy), The Canadian Press (CP, Canada), Deutsche Presse-Agentur (dpa, Germany) and PA Media (PA, UK). All recipients can use this material without the need for a separate subscription agreement with one or more of the participating agencies. This includes the recipient's right to publish the material in own products.

The DNA content is an independent journalistic service that operates separately from the other services of the participating agencies. It is produced by editorial units that are not involved in the production of the agencies' main news services. Nevertheless, the editorial standards of the agencies and their assurance of completely independent, impartial and unbiased reporting also apply here.

Further coverage by the Democracy News Alliance can be found in the DNA digital newsroom at https://www.presseportal.de/en/nr/174021

Hashtag: #DNA

The issuer is solely responsible for the content of this announcement.

News from Asia

Huagui Group: A Global Player Across Two RMB100-Billion Aquatic Markets, as Honghu Lotus Root Ranks No. 1 in Antioxidant Content

HONGHU, CHINA – Media OutReach Newswire – 25 September 2026 – Honghu lotus root ranks first in antioxidant content among major lotus-root-producing regions, according to industrial report by China...

GrabSteel Enters into Committed Equity Facility of up to US$100 Million with White Lion Capital

Johor steel distributor, built to US$28 million without outside equity, arranges its first committed source of outside capital, available following a U.S. listing, to develop Matcon, a construction...

Angel Health Wan Chai Clinic Commences Operations, Providing General Practice, Health Check and Vaccination Services

HONG KONG SAR – Media OutReach Newswire – 25 September 2026 – Angel Health has commenced operations at the Wan Chai clinic, marking a further expansion of the medical service network...

Correcting and Replacing: Global Schools Group Marks 25th Anniversary with S$100,000 Multi-Organisation Community Support

The Group outlined ambitious global expansion with 20 new campuses by 2030 and next-generation student initiativesSINGAPORE – Media OutReach Newswire – 25 September 2026 – Global Schools Group (GS...

From Holiday Getaways to Meaningful Journeys: How Le Méridien Phuket Mai Khao Beach Resort Is Reshaping the Festive Season

PHUKET, THAILAND – Media OutReach Newswire – 25 September 2026 – As travellers increasingly seek meaningful ways to celebrate the festive season, Le Méridien Phuket Mai Khao Beach Resort is unvei...

MIHAS Reaffirms Malaysia’s Pivotal Role in the Growing Global Halal Economy

Flagship Halal Showcase Connects Exporters Across 58 Countries, Unifying Global Sourcing, Sector MoUs, and Industry Knowledge HubsKUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 25 September 20...

Amari Koh Samui and OZO Chaweng Samui invite active travellers to fill their trip with more of the experiences they love

BANGKOK, THAILAND – Media OutReach Newswire – 25 September 2026 – A race or sporting event may be the reason to pack a bag and set off, but the enjoyment of a trip need not end at the finish line...

Green SM Begins Pilot Operations In The Netherlands, Further Expanding Its Presence In Europe

AMSTERDAM, NETHERLANDS – Media OutReach Newswire – 26 September 2026 – On September 25, Green SM held a technical opening event in the Netherlands, marking the beginning of its high-quality pure-...

MIHAS Awards 2026 Celebrates Excellence and Sets New Benchmark for Innovation, Sustainability and Digitalisation Across the Global Halal Ecosystem

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 26 September 2026 - The MIHAS Awards 2026, one of the key highlights of the Malaysia International Halal Showcase (MIHAS) 2026, concluded today a...

QUORRA X5 Makes Its Global Debut at REHACARE International 2026 in Germany

DÜSSELDORF, GERMANY – Media OutReach Newswire – 26 September 2026 – QUORRA X5, a micro-mobility robot, has made its global debut at REHACARE International 2026 – International Trade Fair for Rehab...

Customer Service Is Becoming Part of the Small Business Sales and Marketing Engine

For Customer Service Week, 5-9 October, Thryv is urging small businesses to look beyond generating  enquiries and examine what happens after a custome...

Gift Cards as the gateway to agentic payments

Prepaid and stored value gives consumers the trust and control to try AI shopping agents By Blackhawk Network VP Head of ANZ Kieran Nolan For deca...

Why Data Accumulation Without Governance Undermines Sustainability Goals

In July 2026, Group 2 entities, the second cohort of Australian businesses, began their first reporting period under the mandatory climate disclosur...

Permanent $20,000 Instant Asset Write-Off Gives Small Businesses Greater Planning Certainty

The Federal Government’s decision to permanently legislate the $20,000 instant asset write-off will give eligible small businesses greater certainty...

Selling a Small Business in Australia: Understanding the Capital Gains Tax Concessions

For many Australian business owners, selling a business represents the reward for years—sometimes decades—of hard work. Unlike employees who may bu...

Australian businesses lean into global strategic partnerships (GCCs) for next wave of outsourcing

The Australian corporate landscape is undergoing a fundamental transformation in how it sources talent and innovation. While businesses have traditi...