Once a global ideal, Germany’s economy struggles with an energy shock that’s exposing longtime flaws

By DAVID McHUGH
AP Business Writer

ESSEN, Germany (AP) — Germany racked up one economic success after another for most of this century. But the loss of Russian natural gas due to the war in Ukraine has dealt a severe blow to its industry through higher energy costs. The country will be the world’s only major economy expected to shrink this year. But that’s only part of the story. The energy crisis shined a harsh light on longstanding cracks in the economy’s foundation: too much bureaucracy, not enough digital technology, lagging spending on infrastructure. Companies want action but instead see too much squabbling among the three-party government coalition. Still, Germany has strengths that could help it address the downturn.