Lessons from Germany for Sweden

Sweden must learn from Germany's industrial decline to avoid a similar fate, warns Erik Thyselius in a SvD Ledare opinion piece. Germany, once dubbed "Europe's sick man," now faces a worsening industrial crisis, with over 250,000 industrial jobs lost since 2019, particularly in the automotive sector. Sweden's own automotive component industry risks losing up to 20,000 jobs within a few years, according to the industry organization Fordonskomponentgruppen.

The article outlines five critical mistakes Germany made during the 2010s. First, the "Energiewende" policy, which rapidly phased out nuclear power after the 2011 Fukushima disaster, created an energy crisis fueled by an overreliance on renewables and hefty state subsidies for energy-intensive industries. The author advises keeping "red-green" parties away from energy policy.

Second, Germany experienced "a lost decade" where the CDU focused on lifestyle issues and allowed bureaucracy to explode, doubling compliance costs for businesses between 2012 and 2020. Infrastructure also deteriorated. The lesson: maintain reform momentum and do not neglect infrastructure.

Third, German companies and politicians suffered from "hubris," believing they didn't need to adapt to digitalization or increased competition from China, relying instead on exports. This arrogance, coupled with a lack of imagination, is now threatening the auto industry. The piece praises Sweden's more dynamic and innovative business culture, urging it to continue this path.

Finally, the article touches upon the power of trade unions in Germany, suggesting it has contributed to the industrial challenges. Thyselius urges Sweden not to repeat Germany's errors, emphasizing the need for continuous reform, adaptation to global changes, and a proactive approach to energy and industrial policy.