Modern Business Practices in Germany

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Many countries in Europe are currently experiencing a financial crisis that makes it impossible for them to service their debt without assistance from outside sources. Europe has been experiencing the problem since 2009. Without the help of external parties like the International Monetary Fund, European Central Bank, and the Eurozone countries, countries like Cyprus, Spain, Ireland, Portugal, and Greece were unable to restructure their government debt or bail out overextended banks (Beker, Viktor, and Beniamino Moro).

European Crisis's Fundamental Cause

This crisis was caused by a multitude of factors, including as the methods governments employed to help ailing private bondholders and struggling banks, distressed banking; the fiscal policy choices related to government expenses and revenue; the real estate bubble that occurred in 2008 to 2012; the international trade imbalance; the 2008 to 2012 global recession; the easy credit conditions that were available the period 2002-2012 that resulted into massive high-risk borrowing and the global finance.

How the Crisis Has Impacted the Country

The Europeans economic crisis has had a significant impact on Germany economy. The notable feature of the crisis for the period has been the substantial degree of cross-country heterogeneity changes in the labor markets- the Germany economy has witnessed a persistent increase in the levels of unemployment (Beker, Viktor, and Beniamino Moro). The European crisis has had a strong sectoral bias in Germany, the high level of unemployment has been witnessed in the industry dependent sectors (such as business services, transport, and manufacturing) and in particular the construction industry. Youth unemployment has risen sharply over the course of the crisis. While the rate of economic growth has slowed, the major problem Germany contributes substantially to the bailout funds that are used to help the stricken nations. This implies that if Greece fails then Germany government will have to bail out its banks.

What the Country Is Doing To Solve This

As the concerns pertaining the European Crisis continue to grow, the role of Germany in the region has become more apparent. This does not just arise from the fact that Germany has the biggest economy, it is just the Europe’s fate depend on Germany. While many of the European nation’s economies have been deteriorating German seems to be rising since it managed to emerge from the financial crisis that hobbled many nations. So as to maintain the Euro Germany has stepped in to become the primary creditor. The Germany Chancellor Merkel has for a long time advocated for a strong integration of economic policies and finance in the Eurozone to boost trade and also shield against market shocks and economic crisis.

Obstacles in the Solving the Crisis

Different policies that exist in various countries that exist within the eurozone made it difficult to come up with a quick solution to prevent the crisis. The various countries push for their interest which makes it hard to come up with an exact solution to different issues that affect the world. For this reason, different countries in the European Union were affected differently by the crisis

What the Country Should Do To Solve the Problem

Coordination and corporation in Europe will be the most optimal solution to overcoming the serious threat to the region's progress and stability. Policy cooperation is also necessary in the present world as nations seek to secure the global recovery and come up with a condition for stable, balanced, and sustainable growth.

European refugee crisis

Thousands of refugees crossed the border and interfered Europe in 2015 creating a crisis as nations struggled to cater for the needs of these refugees. The refugee crisis has also created a division among the EU nations on how best to handle the situation. Although not all the refugee that migrate to Europe choose claim asylum some of them do. In Germany for instance, a total of 476000 refuges applied for asylum in 2015. War and poverty levels in various states are some of the factors contributing to the refugee crisis (An Economic Take on the Refugee Crisis).

Cause of refugee crisis

The Syrian Crisis is the leading cause of the Refugee Crisis. Other contributors to the refugee crisis include Yemenis, Afghans, Iraqis, Somalis, Sudanese, Libyans and more fleeing conflicts in their countries. The major contributor of refugee influx is the sense of hopelessness that prevails among the Syrian refugees. After many years of war with no diplomatic or political breakthrough, their future seems bleak.

How Refugee Crisis has Impacted Germany

When asylum seeker migrates to Germany, this country has had to pay process applicants as well as education, housing, and food. In the short run, the extra spending leads to a fiscal expansion or aggregate demand. That implies that more services and goods are produced resulting in more disposable income for the native investors.

What the Country Is Doing To Solve the Crisis

Germany has continued to advocate for more corporation within the European Union. The efforts have been directed towards reaching an agreement with Turkey to try and reduce the number of refugees going into Europe. More effort is now being directed to Africa to seek to bring stability to the conflicting regions. The European Borders protection agency has been reformed to help protect borders more efficiently.

Obstacles in the Solving the Crisis

There has been a divided opinion on how the crisis can be ended. Some of the EU members are calling for an effort to end the conflicts in Afghanistan, Horn of Africa, Libya, and Syria that are fueling the refugee crisis. The UK government, on the other hand, is arguing that EU budget can help stem the flow of desperate and needy refugees seeking a better life in Europe.

What the Germany Should Do To Solve the Crisis

The government has to stop blaming the migrant and refugee crisis for the social and economic problems, and instead of combat all forms of racial discrimination and xenophobia. Doing otherwise stirs up fear and tension of foreigners and can even lead to violence and even death (Adam, Heribert).


Nationalism is the extreme form that is marked by a feeling of superiority over other nations. Nationalists will often advocate for the political independence of a particular country. They have a strong belief that the interests of a given state are of primary importance (Smith, Anthony D). This ideology is also oriented towards maintaining and developing a nation that is based on the shared characteristics such as beliefs of common ancestry, political goals, religion, race, language, and culture.

Root Cause of Nationalism

Nationalism is a wider sentiment that covers individual’s geographical areas where they leave and their language. This is mainly true in those nations that have unique ethnic identities, traditions, and language that are not shared even by their neighbors, for instance, Asia and Japan. Those people who have a unique cultural identity are therefore likely to demand independence and recognition. In many cases, it isn't a sense of belonging and social affiliation that leads to nationalism.

How Nationalism Has Impacted the Country

The Germany nationalism was quite potent in the past. In fact, it took the country in two world wars in the first half of the last century at the cost of millions of Germans who lost their lives, most of the territories were lost and businesses destroyed.

What the Country Is Doing To Solve the Crisis

Cultural integration is one of the primary methods that have been used by Germany to end Nationalism. Germany joined the European Union so that its citizens could have a chance to integrate with other countries such a Netherlands Italy, France, and Belgium. This integration has not only boosted trade but also given citizens an opportunity to appreciate other countries culture and leave in harmony (Smith, Anthony D).

Obstacles in Solving the Crisis

Trying to change people’s long-term stand and culture can be a difficult endeavor. Certain citizens hold the long-term position that they are superior to other countries changing their point of view has proved difficult. Some of the countries also have certain laws that make the integration process difficult.

What the Germany Should Do To Solve the Crisis

The government ought to educate its citizens that corporation between nations is key to economic growth. No county is superior to the other. It is an integration that brings success and economic growth. Citizens must learn to respect and appreciate other people’s culture.


Adam, Heribert. "Xenophobia, Asylum Seekers, And Immigration Policies In Germany." Nationalism And Ethnic Politics, vol 21, no. 4, 2015, pp. 446-464. Informa UK Limited, doi:10.1080/13537113.2015.1095528.

An Economic Take On The Refugee Crisis. Luxembourg, Publications Office, 2016,.

Beker, Viktor, and Beniamino Moro. The European Crisis. London, England, College Publications, 2016,

Smith, Anthony D. Nationalism. Oxford, Wiley, 2013,

February 01, 2023

Business Law Economics


Entrepreneurship Finance

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