Germany, the Giant with the Feet of Clay
By Terence Tse and Mark Esposito
Many people argue that Germany’s model could be the key to strengthening other economies in the EU, however, a deeper look into the German economy reveals that it is far more vulnerable than appears on first look and may be living on its past successes.
On the surface, it stands to reason to think that, as Europe’s largest economy, Germany’s position in Europe can act as the saviour to pull the Eurozone out of its current plight. By many counts, the country’s economy is doing very well. Many people argue that Germany’s model could be the key to strengthening other economies in the EU: Just think the need for Greece to go through the austerity measures demanded by Germany. However, a deeper look into the German economy reveals that it is far more vulnerable than appears on first look.
This is not obvious because seemingly economically and politically strong country is gradually going in decline. There are a number of reasons for this:
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