The German economy has long been regarded as the locomotive of the European (and, on occasion, global) growth. Germany was the experience of stagflation of the 1970s more successfully than many other countries, and the reunification in 1990, appeared to provide opportunities for growth. However, by that time, Gerhard Schroeder was elected chancellor in 1998, many saw Germany as the new "sick man of Europe" - the name assigned to the UK in 1970. Burdened unexpected high costs of integration of the former East Germany to West Germany and choked on the situation on the labor market and the dormant financial markets, German business is no longer regarded as a world beater. In this regard, many argued for a fundamental reform of the institutions of Germany, although many of these institutions, it seemed, was a German, and for most of the post-World War II.
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by Hugh Pill, Ingrid Vogel, Michael W. Linse, Marie-Anne Popp Source: Harvard Business School 24 pages. Publication Date: June 13, 2002. Prod. #: 702087-HCB-ENG
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