Problem area 1: the labour market But over and above these special factors, a simple growth analysis shows that in Germany labour has contributed less to economic growth compared to other countries, particularly the USA. The US economy has obviously been more successful at integrating labour into the production process.
The rapid spreading of the crisis is reducing the options at hand to tackle the crisis. Europe has already taken important decisions to improve its crisis resolution mechanism and to strengthen preventive measures to avoid macroeconomic imbalances and unsustainable fiscal policies. It is important to implement these rules now and make the institutions operational, as markets tend to lose patience.