For many years, Germany recorded some of the worst growth rates in the euro area. Unemployment climbed to nearly five million in 2005. It was only later that the economy emerged from its malaise, and it did so with a vengeance. The improvement in Germany’s labour market – which was also dubbed “the German miracle” – was anything but a wondrous occurrence.
In fact, it was the outcome of shrewd entrepreneurial decisions, moderate wage policy, greater flexibility in pay policy conditions, and not least fundamental labour market and social reform. You don’t need me to tell you that the title of “sick man of Europe” is an award which often changes hands. Other countries are currently the reigning champions in this discipline.