Publication

This commentary addresses the German economic model and questions if the model is suitable for other EU members to follow. Ten years ago Germany was considered to be the sick man of Europe. Its economy was mired in recession while the rest of Europe was recovering. Germany’s unemployment rate was higher than the euro area average, it was violating European rules on excessive deficits and its financial system was in crisis. Today, however, Germany is held up as a model for other countries to follow.