Currency and Financial Markets Europe Public Finances and Financial Economics

The Costs for Germany if the Eurozone Collapses

This article first appeared in the Autumn 2013 issue of Europe’s World (www.europesworld.org).

It’s not a message that public opinion in Germany wants to hear, but a collapse of the EU’s troubled single currency would have devastating economic, financial and political consequences for the eurozone’s largest and most successful member.

Germans have long been among the most europhile of countries, but their mood is turning against Europe and its common currency, the euro. There’s now an openly anti-euro … [continue reading]

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Business Cycles, Growth, Economic Structure Economic Policy Public Finances and Financial Economics

Ailing Infrastructure: Scrimping Threatens Germany’s Future

SPIEGEL ONLINE International writes about the recent study by the German Institute for Economic Research (DIW) about the investment shortfall in Germany:

“From the outside, Germany appears to have a robust economy. But a new study by a leading economic institute reveals that the country is investing far too little in infrastructure and its future, effectively saving itself to death .. (full article)”

For more information on the investment agenda of DIW Berlin, see also my post “… [continue reading]

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Business Cycles, Growth, Economic Structure Economic Policy Public Finances and Financial Economics

10 Statements – Investment for More Growth. An Agenda for Germany’s Future

Germany has been swept away on a wave of euphoria – the public perception is that its economy is thriving and its future is promising. A study by DIW Berlin (document in German, a shorter English version of the study will be published in August) refutes this perception, arguing that, in recent years, Germany has not only made fundamental economic policy mistakes but has also failed to set a course for the future. Above all, this is reflected in a [continue reading]

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Economic Policy Europe

Scapegoating Germany is easy but wrong

published in Financial Times (10th of April 2013)

The most terrifying words in the English language, according to Ronald Reagan, are: “I’m from the government and I’m here to help.” Today, for some Europeans, they are: “I’m from the EU and I’m here to bail you out.”

Germany and the single currency have been made scapegoats for the problems of member states and for Europe’s inability to overcome the continent’s financial and economic crises. Berlin is accused of lacking solidarity[continue reading]

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