Germany’s export-led economic model is called into question, forcing the government to rethink its fiscal policy.

Slumping exports have brought Germany on the brink of recession, according to data released on Wednesday. The overall output in the second quarter fell by 0.1%, as a Sino-American trade war and the prospect of Brexit are weighing on global business and consumer confidence. The domestic market is also affected, as construction also appears to be slowing down.

According to the Fe...

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