Poland's gross domestic product increased by 2.7 percent year-on-year in the third quarter, but decreased compared to the second quarter. The biggest decrease can be seen in exports. Where is the reason? From our western border. Germany, which is Poland's largest economic partner, is experiencing a serious setback. In its latest forecast, the European Commission has predicted that Germany will record a 0.1 percent decline in GDP this year.
The German concern ThyssenKrupp, which also works in Poland, is one of the largest steel companies in the world. He announced that he would cut five thousand jobs by 2030 and transfer another six thousand jobs to foreign suppliers.
German trade unionists say: this is a tragedy. – People are very worried. This is all happening right before Christmas, which shows how little decency the management have. You don't do it like that, you don't treat people like that, says Tekin Nasikkol, head of the ThyssenKrupp Group's Labor Council.
The German auto industry is in trouble
According to the company, the reasons for the layoffs are increased competition in Asia, high electricity prices and a sluggish German economy. In particular, its driving force – the automobile industry – is facing difficulties.
In the third quarter of 2024, the profits of all major German car manufacturers fell significantly.
Profit in the third quarter of 2024 TVN24
Volkswagen even plans to close three of its factories in Germany for the first time in its history. The collapse of the auto industry could exacerbate tariffs announced by Donald Trump on European imports, as foreign cars on American roads are mostly imported from Germany.
The Berlin government demands European unity
– The European Union must be united. It cannot be divided into two or three blocs of countries, but must respond as a united Europe, emphasizes Robert Habeck, German Vice Chancellor and Minister of Economy.
Berlin's government is calling for European solidarity, even though it itself has opposed joint EU tariffs on Chinese electric cars, as Beijing's retaliation could hurt German companies' profits in the Chinese market.
– We have the largest research and development network in China outside of Germany, employing more than 3,200 engineers. Competition is good. It motivates us more, notes Sean Green, president of BMW China.
A report by the German Economic Institute and the Boston Consulting Group found that: “The German economy is in need of the biggest transformation effort since the post-war period.”
Poland may face a ricochet
Germany's competitiveness has been declining year on year – a reflection of its long-standing dependence on cheap Russian gas. Germany is on the brink of recession and Poland could be on the brink.
Last year, our exports across the Oder were more than 80 billion euros.
– Germany is a very important export partner for us. Almost a third of Polish exports are sent to the German market. Therefore, the collapse of the German economy and the collapse of German exports may lead to a decrease in orders in Poland – warns Dr. Hab. Aneta Zelek, economist at the West Pomeranian Business School in Szczecin.
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The situation is further aggravated by confusion in the German political scene. At the beginning of November, the ruling coalition collapsed. Early elections are coming.
Laughter through tears
American Ford cited the unstable political situation as the reason for the shutdown of its German factories, in addition to high energy prices. It is planned that three thousand people will lose their jobs.
– The mood is gloomy, we workers have the impression that the management has no plans except to reduce jobs and save money, – says Martin Schwartz, a worker at the “Ford” factory in Cologne.
Germany is slowly losing its stereotypical image of a strong and orderly country. Berlin's Willy Brandt Airport, built 14 years ago, is still a symbol of recklessness and gross ignorance.
In recent days, the whole country has been laughing at the viaduct in Brandenburg, which costs 17 million euros, and there is no road to it.
Facts about the world TVN24 BiS
Main photo source: Reuters
