The European Union (EU) is an organization that deals with economic, political, and social aspects of life. The EU works towards promoting peace among its citizens, offer security and justice, ensure economy market growth and stability with jobs and social development, supports scientific and technological development, and establishes an economic and financial union among the members. The EU benefits its members as well as non-members worldwide in terms of trade and humanitarian aid. Similarly, the union promotes equality for all citizens regardless of their race, origin, color, or disabilities. Protection of human rights is equally a European Union’s agenda, which ensures every citizen is protected according to the law. The EU was developed after the Second World War with the aim of establishing an interdependent economic cooperation among its constituent members. The union goals later transformed from economic cooperation to external relations, justice, environmental protection, as well as political and climate issues. The union has mixed ideas on nationalism. Some leaders oppose the movement, while others support it. Germany is one of the EU’s constituent that has significantly contributed to the union’s trade and economy. Despite its consistent support to the EU, Germany is struggling independently past its economic decline crisis.
Since the formation of European Union, Germany has been actively participating in the wellbeing of the organization especially economically. For instance, in the year 1951, Germany led in the founding of the European Coal and Steel Community, which reshaped the European’s economy positively (Deutschland.de). The constituent countries shared a market for coal and steel, and traded the natural resources with external countries. Similarly, according to Deutschland.de, Germany is the leading economy in the European Union with a GDP of 3,344 billion Euros, reflecting its economic influence in the EU. Additionally, Germany accounts for more than a quarter of the EU’s output (Henden). Most European countries including France, Belgium, Italy, and Spain relies heavily on Germany for trading purposes. In 2018, Germany contributed the largest share towards the European Union budget, and this has been the case in the previous consecutive years (Clark). Besides these economic contributions to the EU, Germany’s crucial support was evident when its powerhouse economy backed countries like Spain, Greece and Portugal out of the Eurozone debt crisis (Ewing). The crisis, which had emerged as a result of Greece prospects to default on its debts, intensified when other constituent countries of the EU like Spain and Portugal displayed the likelihood of defaulting. It took Germany’s effort and monetary pledge, alongside other EU leaders, to help the affected countries offset their partial debts.
Currently, Germany is on the edge of recession (Ewing), since its economy has greatly declined with no expectations of recovering soon. The financial crisis emerged in the first quarter of 2019 resulting from the decline of exports, shrinking the country’s economy by 0.1% (Henden). Following the economy’s decline announcement, Henden claims that the Nat Alliance global fixed income head Andy Brenner reported that Germany’s economy was in an extremely bad condition; “Germany is in terrible shape with negative GDP this week and with their expectations looking for another negative GDP in the third quarter, the Germans are going to be forced to open up their pockets and do fiscal stimulus. In Europe, its crisis mode.” The crisis is expected to last longer than it was expected. Germany’s present economic position reflects the weakness of the EU on offering support to its members during a crisis. Although the Southern European countries are trying to help Germany out of its crisis, the efforts are too minimal and insignificant. The lack of substantial support by the EU contradicts with its goal of enhancing economic, social and territorial cohesion and solidarity among EU countries (The European Union). The union needs to ensure that all its constituent members are economically stable. Ironically, the Eurozone victims are experiencing a significant economic growth presently, while Germany is on the edge of recession. The EU needs to formulate a workable plan that will prevent Germany’s recession through boosting its economy.
Although Germany has contributed greatly to the European Union’s economy, the country has received insignificant support from the EU, during its economic struggle. The EU is an International organization that aims at supporting its constituent members as well as non-members, socially, politically, and economically. The union ensures protection of human rights and promotes equality among everyone. The EU’s failures have been reflected in the current Germany’s economic decline crisis that resulted from the tremendous deterioration in exports during the first quarter of this year. The country is one of the major contributors of the EU in terms of the economy, with more than a quarter of the Union’s output. Some of its contributions are the formation of the European Coal and Steel Community, bailing out of the Eurozone debt crisis countries, in addition to its largest GDP in the EU. With Germany’s current economic state, the EU has shown limited support, yet most of the EU constituent countries are experiencing economic growth significantly.
Ewing, Jack. “Germany Has Powered Europe’s Economy. What Happens When Its Engine Stalls?” The New York Times. 16 Aug, 2019. https://www.nytimes.com/2019/08/16/business/eu-economy-germany-recession.html. 17 Nov. 2019.
The European Union. “Goals and values of the EU.” The European Union. 29 Oct. 2019. https://europa.eu/european-union/about-eu/eu-in-brief_en. 17 Nov. 2019.
Deutschland.de. “Ten facts about Germany in Europe.” Deutschland.de. 30 Oct. 2019 https://www.deutschland.de/en/topic/politics/germanys-role-in-the-eu-ten-facts-and-figures. 17 Nov. 2019.
Clark, Daniel. “European Union (EU): Budget contributions by country 2018.” Statista. 26 June 2019. https://www.statista.com/statistics/316691/european-union-eu-budget-share-of-contributions/. 24 Nov. 2019.
Henden, Amalie. “Germany Recession fears: What could Germany’s Economic Crisis mean for the EU?” Express logo. 19 Aug. 2019. https://www.express.co.uk/news/world/1167454/germany-recession-what-germany-economic-crisis-EU-angela-merkel-news