Social market economy

Germany, Portugal, Spain and Italy will need in the coming year to liquidity from the capital markets. Ireland and Greece can operate at low interest rates from the bailout pot. It is a truism that who ordered the music must pay the chapel. Often this rule is unfortunately not taken regularly. Looking for a way out of the debt crisis now require some European bonds to be jointly liable for all euro countries. The benefits have the responsibility and clammy States should just take those countries that have managed their business solid. Disincentives would be elevated.

Therefore, the federal government indicated that countries with sovereign economic policies also are need to be confident enough. So, they to answer for their own debts. Indirect forms euro bonds were already a reality, namely, with the introduction of the euro. For the markets, the euro was initially another term for DM particular southerners enjoyed a sudden interest. Such one, which they had not imagined even in their wildest fantasies.

Yet what they did with this gift? Today, almost 10 years later, the markets are again demanding to more interest rates that are realistic. The experience of the last 10 years should be instructive. The euro bonds would only exacerbate the problem. Nothing has changed in the mentality of the people in the southern countries and the measures initiated happened only due to external pressure. It would be good if crisis countries are adapt to the social and fiscal policy immediately of the present. In this way will show solidarity with Europe.

In the same time, the common economic policy will be inevitable in the medium term, although the euro bonds provide no adequate means now.Germany has the economic catch-up after the crisis ahead. The economy is booming. First in terms of exports as well as for private consumption. Why is the German economy out of the crisis so powerful? Sure, we now benefit from the international integration of our industry. Germany is benefiting from its willingness to change the past years. This is ultimately the result of two epochal events: German Unification and globalization.

In East Germany, after reunification modern industry, it is became the model for many companies in the West. With the favourable development of unit labour costs rose and the global competitiveness of the two halves of the country. With the rigid regulations of temporary employment protection have been circumvented. In short, Germany moved closer to a piece of America, exactly where it was most needed in the market flexibility.