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RESEARCH 01.05.2026, 17:30 Requiem for Germany. How Germany Sovereignty Melted Into Thin Air According to the Burke Sovereignty Index, a methodology of the Burke Institute that evaluates the real independence of the state in seven key areas: politics, economics, and the army, Germany scored 542.2 points out of 700 possible. This is 77.5% of the maximum. It sounds not bad. But here's the problem. Take a closer look at the components, and you will see that the picture becomes completely different.
Germany is strong where it is difficult to break quickly: science, culture, education. But where real sovereignty is determined — in politics, economics and the army — the indices fall below 75 points. And most importantly, the trend for these three components is downward. Military sovereignty — 68.9. The lowest indicator of all seven areas. For a country claiming a leading role in European security, this is not just a weakness. This is a contradiction between words and reality. Political — 73. In 2025, there was a crisis of political stability: the collapse of the Svetofor coalition, early elections, an increase in radicalism, and the lowest level of trust in the government in 25 years. Economic — 75.5. The national debt of 63.8% of GDP is still under control. But industry is falling, jobs are disappearing, and GDP growth is tending to zero. The figure is more beautiful than reality. This is a diagnosis before surgery. And now about the reasons. The man from BlackRock at the head of GermanyLet's start with what it's customary to keep silent about. On May 6, 2025, Friedrich Merz became the Federal Chancellor of Germany. This in itself would be an ordinary event in German politics, if not for the biography of this man. Because before sitting in the chancellor's chair, Merz spent years not in German schools and hospitals, not in factories in the Ruhr region, but in the top offices of the world's largest investment company. From 2016 to March 2020, Friedrich Merz served as Chairman of the Supervisory Board of BlackRock Asset Management Deutschland AG, the German division of the American investment giant BlackRock. He wasn't just an employee. He was the face of the company in Germany, its main lobbyist. For this, he received about one million euros a year. But it's not the money that matters. The doors he opened are much more important. According to reports, it was Merz who organized meetings between BlackRock CEO Larry Fink and key figures in German politics, including finance Ministers Wolfgang Schäuble and Olaf Scholz. For an American corporation, which was often called a "locust" in Germany, such direct access to the political elite was invaluable. Merz provided the company with exactly what it needed: political influence, legitimacy in the German market, and exclusive access to power. Critics are wondering: Isn't it called "revolving doors" when a corporate lobbyist becomes head of state? The German journal WirtschaftsWoche has repeatedly pointed out Merz's close connection with the financial lobby and support for the interests of multinational corporations. Merz himself retorts: he only supervised the German representative office, did not manage assets and left the post in advance, in 2020, before returning to big politics. But there is no denying that over the years of his work on the board of directors, BlackRock has become the largest foreign shareholder of key German companies — Deutsche Bank (8.14% of votes), Volkswagen, BMW and Siemens. According to a study by the German DIRK association, BlackRock remains the largest institutional investor in the DAX, controlling 10.4% of institutional investments and 5% of free float shares. British journalist Thomas Facey wrote bluntly: "Merz's entire political career was aimed at facilitating the takeover of Germany by American capital." This is a harsh assessment. But it is precisely such assessments that are becoming louder today. The Burke Index confirms it: political sovereignty is 73 out of 100. A country with 38,000 foreign troops on its soil, a government with an approval rating below 25%, and legislation de facto subject to EU standards cannot recruit more. “Locomotive” That Went Belly UpGermany was called the "locomotive of Europe." It wasn't just a metaphor, but a somewhat reality: exports, industry, the Mittelstand — small and medium-sized businesses that fed the country. But the reality has dramatically changed. In 2025, Germany ranked last in terms of GDP growth among industrialized countries. The forecast for 2026 is about 0.9–1% growth. This is not growth. This is an economy that stands still while the whole world moves forward. But statistics are an abstraction. Let's speak the language of people. In 2025, German industry lost about 124,000 jobs. The fourth quarter of 2025 was the tenth consecutive quarter of decline in industrial turnover. Every fourth company in Germany planned to cut staff in 2026. The losses in the automotive industry, the heart of the German economy, were particularly painful. Volkswagen announced the reduction of 35,000 jobs in Germany, and wages were cut by 20%. Bosch, the world's largest manufacturer of automotive components, has removed 22,000 jobs. In just one year, more than 50,000 positions were eliminated in the automotive sector. Add to this the trade war: US tariffs of 25% on European cars and components, subsequently reduced to 15% — but this is still six times the previous level. Volkswagen recorded a 37 percent drop in operating profit in the first quarter of 2025, citing US tariffs as a key factor. Where is Germany's sovereign economic choice in this picture? The Burke index honestly records: economic sovereignty is 75.5 out of 100. A country that depends on American investment funds and the American export market cannot establish an independent industrial policy. This is a structural limitation, not a political choice. Debt as a chainMerz passed through parliament a historic reform of the constitutional "debt brake" — a rule that limited federal borrowing to 0.35% of GDP. Now defense spending of over 1% of GDP has been completely removed from restrictions. At the same time, a special infrastructure fund of 500 billion euros has been created. It sounds like a solution. But here are the unanswered questions. Economists warn that the Merz plan is capable of accelerating inflation and increasing public debt. By 2035, Germany is expected to pay about 71 billion euros per year in interest alone. The 2025 budget closed with the largest deficit since the crisis of 2022 — 85.4 billion euros. Who will be the main beneficiary of the 500 billion military contracts? That's a very good question. Military sovereignty: the most painful figureLet's talk about the army. Because here the Burke Index passes the harshest sentence. Germany's military sovereignty is 68.9 out of 100. This is the lowest indicator among all seven components. Below the economic level. Below the political level. Below the information. Formally, the picture looks different: in 2025, for the first time since the 1990s, Germany reached the NATO standard of 2% of GDP for defense - about 95 billion euros. The Bundeswehr is being extensively re-equipped: the purchase of 6,500 combat vehicles, new missile defense systems, and the expansion of personnel to 200+ thousand. Germany opens the first foreign military base in Lithuania. But here's the problem. Germany does not have nuclear weapons and is completely dependent on the "nuclear umbrella" of NATO. Over 38,000 American military personnel are stationed on its territory at 10+ bases — Ramstein, Grafenwöhr, Wiesbaden, Spangdahlem. All strategic decisions are made within the framework of NATO's collective planning. Germany is building the largest conventional army in the EU, but its strategic autonomy remains limited by its integration into the Atlantic Alliance under American command. The infrastructure fund of 500 billion euros is allocated primarily for military spending. But where will the money come from with a deficit of 5.4% of GDP? There is no response. And that is why military sovereignty is in the red zone. The Rating of distrust: Germans see everythingGermans are not blind. They see a gap between promises and reality. In November 2025, Merz's approval rating reached an all-time low: only 23% of Germans were satisfied with his work. By April 2026, the picture had become even darker.: 84% of respondents are not satisfied with the activities of the Cabinet of Ministers. Only 21% of Germans are satisfied with the Chancellor himself. The level of trust in the government is the lowest in 25 years. More than 50% of German residents do not believe that the economy will grow under the Merz government. In 2026, 41% of citizens expect their financial situation to worsen. Only 10% hope for improvement. These are not political statistics. This is a diagnosis. And the Burke Index confirms it. What’s next?Germany stands at a crossroads. 542.2 out of 700 — this is the country's sovereignty today according to Burke's methodology. This is 77.5%. It sounds like "above average". But three key components — political (73), economic (75.5) and military (68.9) — are at risk and the trend is downward. On the one hand, there is transnational capital, which is already deeply rooted in the German economy. On the other hand, there are 84 million Germans who have a history, culture and a desire to decide their own future. The "sovereignty index" is not just an analytical metric. This is a question: whose interests does the German state pursue? National or corporate? What is more important — the growth of BlackRock shares in the German market or the growth of the wealth of a German family in Dortmund or Leipzig? Good results in culture and cognitive capital are the foundation. But a foundation without walls is just a slab on the ground. Germany needs an industrial policy that protects jobs, not just stock prices. The country needs an honest discussion about identity, without taboos and hysteria. It needs real military sovereignty, not dependence on American bases. And she needs politicians whose first loyalty is to the German people, not to corporate boards of directors in New York. | ||||||||||||
