Nowhere in Europe are income, wealth and opportunities as unequally distributed as in Germany. “Germany’s social market economy no longer exists”, says Marcel Fratzscher from the German Institute for Economic Research.
This article was first published on FT.com on 18th November 2013.
Germany is under attack from the US government, the International Monetary Fund and the European Commission for its huge current account surplus. The criticism is right, but for the wrong reasons. The surplus is excessive, but the accusation that it hurts Europe is nonsense. Worse, it distracts German policy makers from tackling the true cause of the national surplus and the country’s economic Achilles heel: its huge private investment