Welcome to the new normal! We don’t yet know exactly what that is, but the developments we are currently seeing in the German, European and global economy are causing us to feel “angst”. This famous German term has been adopted by Americans, Brits and people of many other nationalities. All kinds of things are making us anxious – our sluggish economy here in Germany, the fear of becoming less competitive, the dynamic developments in Asia, the ruthless assertion of geopolitical and economic interests, social division, “social” media and, in fact, almost everything. Something that is particularly unsettling is the idea that this “angst” could be our new normal.

THE RETURN OF PROTECTIONISM

We look back longingly to the early 2000s and are convinced everything was better in those days. And then there’s also the US tariff policy. In simplistic terms, you could describe this as a resurgence in the protectionism of years gone by, which we thought was dead and buried. For over 30 years, we lived in a world of increasing economic and political networking. Bringing new prosperity to even the poorest nations, globalisation tackled hunger and illiteracy – more than all the development programmes of past decades put together. And now we have tariffs, threats and unilateralism!

That’s a challenge for us, but is now the time for us Europeans to stick our heads in the sand? Must we accept that our infrastructure is suffering, our industry is being damaged and our economic strength is dwindling? The clear answer is no! The solution is much more obvious than we think. We ourselves are the solution – you and I, and the masses.

DANGEROUS COMPLACENCY

How, you ask. Bear with me. During the financial crisis, the central banks opened their coffers to prevent a global economic crisis. That was the right thing to do, but it also had consequences. The economy had been booming for years – especially in Europe, including Germany. We got used to that and believed everything would continue in the same vein. The normal cyclical downturns largely failed to materialise. An entire generation had no experience of a real crisis. Skilled workers grew scarce, and we were often overly quick in yielding to socio-political demands. All that led to a sense of complacency that shifted our priorities. Hard-won past successes and achievements were increasingly taken for granted and expected to continue in the future.

Then came coronavirus. We were worried and saw governments spending large sums to safeguard jobs and prop up faltering companies. The undeniable advantages of working from home became a synonym for self-optimisation – until companies summoned their staff back to the office. Concepts such as achievement and personal responsibility were frowned upon. Regulation mania and bureaucracy gained the upper hand. And now? Many people are looking on “sheepishly” and realising things can’t go on like this. They are calling on politicians to do something about it and hoping they don’t have to do anything themselves. It would be better if as many people as possible took responsibility, and if innovative approaches could be found in both politics and business.

Solutions are possible – if we are all prepared to stop unquestioningly accepting bureaucracy, to start valuing achievement again, to welcome new ideas, to go back to working harder, to question cherished comforts and to make room for common sense.

A DIFFERENT MENTALITY – THE GAME-CHANGER

Whether we succeed in making things better is a question of mindset. Germany still has everything it takes to work its way back up – good education and training, universities, a dynamic SME sector, legal certainty and much more besides. A strong, united Europe is still the right way to go, perhaps more than ever right now. It’s worth resetting the compass and doing everything we can to put things right again. If as many people as possible pull together, we can make things happen quickly. It’s time to move out of our comfort zone before it becomes permanently uncomfortable. We should articulate that wherever possible. Only a different mindset – a term that Germans have, in turn, taken from English – will create the conditions for change.