Germany’s paralysis threatens European economy

Germany is just hit by a combination of different factors. Some are bad luck, some are bad politics, but none of them are incredibly dangerous. The gas crisis is solved and gas prices are already at a fairly normal level again, so consumers will get more money from lower energy prices. Currently German has a lot of strikes. Obviously that slows down the economy right now, but higher pay means workers spend more money, which increases consumption, which is currently slowing down the German economy. Global manufacturing is down due to lower demand. This hits Germany badly, due to not only having a large manufacturing sector(manufacturing as a share of GDP is nearly twice as high for Germany then France for example), but also due to Germany being a large manufacturer of factory grade machines. Obviously manufacturing companies invest less, with low demand, so the sector is hit especially hard. A domestic bad policy is the debt brake, which leads to the German government investing too little in Germany.

However the German labor market is strong with low unemployment. Germany can easily borrow a lot of money, if it chooses too and the current "crisis" is about a tenth of the decline Germany had in the great recession of 2009. So chances are this is going to sort itself out and to a large part already has done so. It most certainly is not going to hurt other EU countries especially hard.