Quote:
Originally Posted by Osem
http://www.bbc.co.uk/news/business-29681331
It'll be interesting to see how keen the Germans are to share in the European austerity, unemployment etc. they've managed to avoid for so long. I can't see anything in Europe changing very much until the Germans start feeling the pain.
|
Germany imposed austerity on itself for the past decade, driving wages down in an attempt to maintain a huge competitiveness gap with other members of the Eurozone. Part of the reason for pain in Germany now is the extreme reluctance to invest in pretty much anything.
They need to spend more at home, invest in infrastructure and rely less on the Eurozone keeping their exports cheap and emerging economies continuing to buy their stuff.
In short they have largely the opposite problem to us. Their own dogma is coming home to roost.