Germany can't recover from this - Yanis Varoufakis & Wolfgang Munchau | The Econoclasts

The European political center is undergoing a terminal decline, characterized by the paralysis of traditional parties and a failure to address structural economic weaknesses. Germany’s recent election results, specifically the CDU’s failure to meet representation thresholds in certain states, exemplify this broader meltdown. The current economic model, heavily reliant on industrial surpluses and US-managed global imbalances, has left Europe without fiscal stabilizers or genuine sovereignty, particularly regarding defense. The center-left bears significant political responsibility for this trajectory, having abandoned its traditional corporatist roots to embrace financialization and austerity. By failing to challenge the banking sector after the 2008 crisis and adopting aggressive, interventionist foreign policies, these parties have alienated their base and created a political vacuum, leaving voters to oscillate between the far-left and far-right in a search for alternatives that do not yet exist.