Bloomberg predicts Germany to become economic hegemon after coronavirus


After the end of the COVID-19 pandemic, companies from Germany may begin to aggressively expand their activities, which will negatively affect the “European dream”. It is reported by the American agency Bloomberg.


Countries that have a low debt burden have the best economic prospects after the pandemic. And Germany, which is capable of seriously subsidizing its companies, is just one of those countries.

All serious economic crises, regardless of the source of their cause, are accompanied by two main problems (challenges). Crises suck out liquidity and burn out equity. At the moment, the revenues of many companies have virtually disappeared and companies are going through difficult times awaiting support.

So who can provide a syringe with an “injection” of capital? After all, it is hardly worth expecting from households and countries with high debt burdens such as Italy.

Germany is the country where everything is fine with finances. Moreover, the European Union recently lifted the ban on providing state assistance to private companies. So, state financing, recapitalization and even partial nationalization will be very effective there.

Therefore, after a pandemic, many under-capitalized firms of their high debt burden states may face serious competition from those companies whose states have been able to help them. Therefore, it will not be surprising if debtor countries become even weaker and their pace of development slows down. Competitive companies from financially prosperous countries can take advantage of this by starting acquisitions in various markets.

Is there an alternative to this gloomy scenario that threatens the end of the “European dream”? Only one option is possible - concerted intervention at the pan-European level by creating a pan-European fund, which will be financed by the European Investment Bank. Such a pan-European structure will enable European companies to engage in investment and competition solely on the basis of their profitability, and not the debt burden of the state.
Photos used: Michał Beim / wikimedia.org
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  1. 123 Online
    123 (123) April 12 2020 23: 25
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    Countries with low debt burdens have better economic prospects after the pandemic.

    What are you saying? How bad it turned out, but what about us? Does our debt seem to be even less? What about our prospects?
    And everything is bad with us.

    Putin plans $ 14 billion incentive to increase spending

    - otherwise, unemployment, bankruptcy and a deep economic downturn. crying In general, everything is bad, and there is no light at the end of the tunnel. no And the difference in the articles is only three days.

    https://www.bloomberg.com/news/articles/2020-04-10/putin-plans-14-billion-stimulus-as-pressure-mounts-for-spending?sref=Y0jVLcFo

    Probably everything is lying to us, can Bloomberg himself be biased? repeat
  2. Bulanov Offline
    Bulanov (Vladimir) April 13 2020 16: 21
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    German companies are unreliable partners. You can look at the example of Siemens for Russia. And what else to expect from an American-occupied country? What they say in the USA, they will do it in the FIG. Contacting them is more expensive!