He said: “The special phase of globalization that we have experienced in North America and Europe over the last 30 years, with solid growth, high value added and low inflation, is coming to an end.
“One of the reasons for this is that low-cost producers in the global south are gradually becoming thriving self-demand economies that strive for the same level of prosperity as us.
He acknowledged that globalization has created losers and said it needs to become smarter.
Mr Scholz said the fight to strengthen energy security “will have an impact on European economies”.
“We feel it, not least because of rising energy prices, and of course, this is a very special challenge for a country like Germany, which is an industrialized nation.
Germany is one of the countries that relies most on energy imports from Russia and has refused to support the gas embargo to put pressure on the Kremlin. German households and factories have been hit by soaring energy prices, and the Bundesbank has warned of a sharp contraction if gas supplies to Russia are cut off.
“We cannot allow Putin to win his war, and I firmly believe that he will not win it,” Mr Scholz said.
“He has failed to achieve any of his strategic goals. Russia now seems less likely to take over all of Ukraine than at the beginning of the war, not least because of the remarkable defensive action led by the Ukrainian army and the European population.
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