Bojan Pancevski

There is sort of a creeping sense of panic.

Germany is basically losing roughly 15,000 jobs from manufacturing each month.

Wow, wow.

This is a striking figure.

Yeah, it's a striking figure.

It's a bloodbath.

And obviously, it's a situation that requires urgent action, both on behalf of the businesses, on the enterprises, and the government, who is desperate to help them and stop the bleeding.

There is money to be made in the arms industry, which is one of the very few branches of the economy that's actually booming.

And they seem to have coalesced around the idea of going into the defense industry, which is now kind of crucial in Europe.

That's right.

They're pivoting from cars to cannons.

Oh, you know, when Germany, Germany is this giant sort of beating industrial heart of Europe and smack in the middle of the continent.

Essentially, a lot of countries, if not most countries in mainland Europe are entangled in the German supply chain.

And when German manufacturing is stuttering, these countries are also losing growth.

I mean, one example is Austria, one of the richest countries in Europe, and it's completely embedded in the German supply chains.

The same is true also for countries like Hungary or the Czech Republic.

So, you know, everyone suffers if Germany suffers.

China, once basically a customer of Germany, has turned into its most fierce rival and is producing things that are as good or cheaper than what Germany has to offer.

I mean, their electric cars are in part better than the German cars, which is unheard of so far.

You know, the Germans were over as comfortable as being the best on the market.