Germany, now the dominant country in Europe, needs to rethink the way it sees itself and the world, says Zanny Minton Beddoes
From the football pitch to politics to the economy, Germany has become Europe’s most powerful country. Described by this newspaper as the sick man of Europe in 1999, Germany now appears to have the continent’s strongest as well as its biggest economy. It accounts for a fifth of the European Union’s output and a quarter of its exports. From Volkswagen to SAP, Germany’s big companies are world-renowned. Many smaller German firms are global champions in niche markets such as tunnel-boring machines and industrial cleaners.
Germany’s jobless rate, at 5.4% (using standardised OECD statistics), is less than half Europe’s average. Youth unemployment, a scourge throughout much of the rest of the continent, is at a 20-year low in Germany. The country’s budget is balanced, government debt is falling and long-term bond yields are the lowest in Europe. It is the largest creditor country in the euro zone, and as chief paymaster it has the biggest clout in determining the single currency’s future.
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- Economia Alemã
Special report: Germany
The economy
Dissecting the miracle
The ingredients of German economic success are more complex than they seem
Jun 15th 2013 |From the print edition
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- Foi A Alemanha Que Mais Ganhou Com O Euro
Empirical and Thematic Perspectives
Germany’s “Windfall” from Euro-Area Membership and European
Imbalances
In an essay published last week, we argued that European monetary union, coupled
with Germany’s extraordinary wage restraint, has...
- Recursos Para Macro Ii E Macro Iii
"... Who is to blame for the state of the world economy? To listen to a range of presidents, investors, pundits and finance ministers, just one country: Germany.
U.S. President Barack Obama suggests the Germans are sending the world back into recession....