As a German, I think the issues are much more high level and deeply, deeply rooted in society (culture and official administration) than most tech people realize.
1. Germany has built it's entire identity around a social contract similar to Japan that roughly goes like this: We will have a backbone of well paying industrial jobs (both white and blue collar) which we'll use to generate large trade surplusses by exporting physical goods gloablly to fund our internal high cost social security and healthcare systems. As the state, I prefer low worker mobility, cause that keeps unemployment and hence all costs to the state low.
2. Financial markets/ access to capital/ investments/ taxation work the same way: Allocate capital to physical goods manufacturers with high working capital requirements, long investment horizons, tax the shit out of labor vs. capital gains, make the already strong companies stronger instead of gambling on upstarts.
3. There are workers and there are capitalists and these two should not mix: Labor is taxed insanely high, stock options/ labor equity participation basically unheard of and nobody cares about that in the government. It's only relevant to a tiny fraction of the electorate. It's a non-issue for the federal government.
4. No incentive for "the winner takes all", all incentive on "stable, low fluctuation employment".
It's a sh*tshow as clearly showing with the abysmal growth Germany has experienced over the past 5 years.
It will 100% get worse before it gets better (if not for politics simply due to demographics, where a disproportionally large share of social welfare consumers will need to be supported by an ever-shrinking share of tax payers). There are already talks about further tax increases and as the demographics worsen, the state will come looking for new income sources. Guaranteed.
Yes, quality of life is great for now (esp. in places like Berlin) and yes, there is an evergrowing tech eco-system, but this is in no way indicative of where Germany as a whole is going systematically.