The German economy was able to face the repercussions of the Corona crisis with great flexibility and avoid the recession that many European countries experienced during the last period, but it will need the economies of its major partners on the continent to recover fully. In a report published by the German magazine "Der Spiegel", writer Klaus Hecking says that Germany has so far been able to overcome the crisis with the slightest damage, unlike the major economies on the continent, for several reasons, most notably the German economy's dependence on industry and government aid program and the lack of asylum to a complete closure, but the situation remains fragile, according to him. Gabriel Felbermayr, head of the Kiel Institute for Global Economy, believes that the current crisis has shown the size of the disparity in economic growth among the major European countries, where Germany has clearly outperformed others in health and economics, and explains that the stability of consumption rates in Germany has helped in the recovery of the economy significantly. "Germany is one of the best major economies in the world," comments Clemens Fuest, president of the Munich Institute for Economic Research. But what are the reasons for the German economy’s superiority over the rest of European countries in the face of the Corona crisis? The German economy was more coherent before the crisis The head of the Kiel Institute says that the Corona crisis struck Europe in different economic conditions, as the Italian economy has been suffering from a continuous recession for decades, Spain is living on the impact of the repercussions of the euro crisis, and Britain is in a state of uncertainty as a result of the decision to leave the European Union, while France is struggling because of Stalled economic reform programs. As for the German economy, it was far from these serious structural problems, and thanks to nearly 10 years of economic prosperity, many German companies were able to achieve profits that enabled them to overcome the Corona crisis with the slightest damage. Partial closing policy The high number of daily infections with the Corona virus during the first wave in Spain and Italy, made the governments of the two countries decide to impose a complete closure to prevent the spread of the epidemic, which paralyzed the economy for several weeks, and the British government took the decision to close later, but it lasted for a longer period and caused economic losses. Larger. In Germany, the virus has not spread widely, so companies have not been subjected to strict closure measures. advertisement "Unlike France, for example, we did not witness a complete closure in Germany, with the exception of the car industry, and many companies continued to operate in one way or another," says Fuest. Industry Reliance The collapse of the tourism sector globally led to the decline of the economies of France, Spain and Italy, which are considered among the most important European tourist destinations. In contrast, the German economy was not affected much because the tourism sector is not of the same importance compared to the industrial sector that enabled Germany to withstand the crisis. Fuest confirms that German industrial exports have begun to recover quickly, although they did not reach their levels a year ago, explaining that one of the most important advantages of German industry is flexibility, "if things go wrong in one market, it opens other markets, especially in Eastern Europe." Fuest adds that one of the German industry's strengths is the diversity of exports. With the decline in the automotive and mechanical engineering sectors, pharmaceutical exports have seen a steady growth. Government support for individuals and companies Another factor that led to the resilience of the German economy in the face of the crisis, as the writer says, is that the German government was very generous with workers and companies, as it adopted the part-time system, which is based on providing a large part of the salaries to workers with shorter working times, and to encourage consumers to To keep spending, the federal government and the rest of the states have lowered value-added tax. In Britain, the government intends to stop another part-time work programme, which may lead to a severe unemployment crisis, and government aid in Spain and Italy is much less than what Germany has allocated to overcome the crisis. The situation is still fragile Despite the many positive indicators, such as the recovery of the German "Dax" stock index, which compensated for its losses from the first wave, and the rescue of "Lufthansa" - the largest German airline - from the severe crisis it faced, the decline in the number of bankrupt companies, and low unemployment rates. In relative terms, the German economy is not immune from the repercussions of the Corona crisis. The writer stresses that the German Stock Exchange is still in a state of instability, and that Lufthansa may lay off a large number of employees, and experts fear a sharp bankruptcy wave once debt-laden companies are forced to declare bankruptcy. Fuest believes that the economy's recovery and return to what it was before the Corona crisis will not be soon. Filbermayr also expressed surprise at the wave of optimism, saying, "It is difficult to understand why companies are evaluating the situation as they did in August last year. (Reality) optimism in Germany is exaggerated, many companies appear to be in a good condition on the surface, but their investments are low, So it seems worrying, even in Germany." The writer concludes that the German economy has already succeeded in absorbing the serious repercussions of the Corona crisis, but it will not be able to fully recover on its own, and it may face major problems if the major partners, such as France, Italy, Britain and Spain, cannot overcome the crisis.