<p>Germany has been Europe’s economic engine for quite some time, both its industrial powerhouse and fiscal anchor in times of deep uncertainty. While Southern Europe suffered deep recessions during the Eurocrisis, Germany maintained low unemployment and a massive trade surplus. After 5 years of economic stagnation induced by the Covid-19 pandemic, that role is now under strain. </p><p>In a conversation with Marcel Fratzscher, President of the German Institute for Economic Research, we examine whether Germany can still fulfill that role or whether structural pressures are permanently reshaping its role within Europe. As its export-driven model comes under strain and fiscal constraints limit large-scale investment, a key question emerges: Will Germany continue to be the economic engine Europe can look up to?</p>