The current economic and political situation
Germany was hit hard by the global financial crisis in late 2008 and 2009. In October 2008, the government financed a multi-billion Euro bailout of some of the country's largest banks to prevent them from collapse. These banks had followed the strategy of the American and British banks in investing in sub-prime mortgages and other speculative ventures. It is to be noted that the other banks and the Savings Banks in particular (who finance nearly half of German industry) were largely unaffected and continued their fundamental strategy of providing banking services for industry and the community.
All this was followed in early 2009 with another multi-billion Euro stimulus package to help lift the battered economy out of recession. Very quickly, once the potential depth of the recession became apparent, legislation was introduced that provided additional funds to companies that were obliged to put employees on short-time working. It is estimated that over half a million jobs were protected at a cost to the federal government of around five billion Euros each year. At the peak, some 1.1 million people were being supported by the scheme. This resulted in companies being able to retain their employees who o