Follow @PoliticsIE
 
 
 
Page 1 of 3 123 LastLast
Results 1 to 10 of 30

Thread: Can Germany become the european economic powerhouse again?

  1. #1
    Politics.ie Member
    Join Date
    May 2005
    Posts
    1,961
    Mentioned
    0 Post(s)

    Default Can Germany become the european economic powerhouse again?

    The German economic miracle since the 50's appears to be under huge threat. Euro growth has stagnated because of the German difficulties. what can be done to get this giant back on it's feet.

  2. #2
    Politics.ie Member rockofcashel's Avatar
    Join Date
    Jan 2005
    Location
    Ireland
    Posts
    7,956
    Mentioned
    0 Post(s)

    Default

    Umm.. invade Poland ?
    1,197 people agree with me.. how many agree with you ?

  3. #3

    Default

    The German economic miracle since the 50's appears to be under huge threat.
    Appears - they have had unemployment of over 10% for absolutely ages - they are ******************************ed there economy is very export led because there is no domestic growth - a world wide recession could hurt them alot more than others.
    There labour laws are mad - if you want to fire someone most times you have to pay them a years wages just get rid of them.
    There unemployment benefit was huge but is at last becoming sane.

    They need serious 'Anglo-Saxon' fiscal economics and to dump the social model - then they might have a chance because there productivity is actually quite impressive.

  4. #4
    Politics.ie Newbie
    Join Date
    Apr 2005
    Location
    UCC
    Posts
    91
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by rockofcashel
    Umm.. invade Poland ?
    Done.

    How about we give them our jobs.

  5. #5
    Politics.ie Member
    Join Date
    May 2005
    Posts
    1,961
    Mentioned
    0 Post(s)

    Default

    to watch-this-drive, yes their labour laws are a bit restrictive but as you say thay have huge productivity levels. I read a report recently that showed that the French have the greatest productivity levels of all the Euro zone countries. So the question is why are productivity levels so high? Is it because the workers are well protected legally? or could these high levels of productivity pull both countries out of the doldrums if they are realeased from over-restrictive work practises?

  6. #6

    Default

    Quote Originally Posted by hiker
    to watch-this-drive, yes their labour laws are a bit restrictive but as you say thay have huge productivity levels. I read a report recently that showed that the French have the greatest productivity levels of all the Euro zone countries. So the question is why are productivity levels so high? Is it because the workers are well protected legally? or could these high levels of productivity pull both countries out of the doldrums if they are realeased from over-restrictive work practises?
    I think their productivity is so high because their have been many employment freezes, businesses have been afraid to employ for so long because of the cost and the restrictions that they relied focused everything on increased productivity to make up for lack of extra labour.

  7. #7
    Politics.ie Member
    Join Date
    May 2005
    Posts
    1,961
    Mentioned
    0 Post(s)

    Default

    Quote Originally Posted by watch-this-drive
    The German economic miracle since the 50's appears to be under huge threat.
    there economy is very export led because there is no domestic growth
    .
    This is an interesting point. The germans are great at saving. I think on average they save about 15% of annual incomes. They appear to have maintained their exports because they export very high priced, high quality goods. the cost of living is relativly low. they seemed to be poised to expand because they have a huge labour pool dip into.

  8. #8
    Politics.ie Member FutureTaoiseach's Avatar
    Join Date
    Mar 2005
    Location
    Dept. of FutureTaoiseach
    Posts
    7,992
    Mentioned
    0 Post(s)

    Default

    Reasons for the problems in Germany:

    A: Punitive tax-rates. A top rate of income tax of 58%, and a corporation tax rate of 55% for multinationals. Multinationals are hardly going to find such an environment attractive now are they?

    B: Labour laws that are too restrictive. They force employers to give employees six weeks holiday per annum, and make it too difficult to sack workers.Again unattractive to multinationals.

    C: 7 million immigrants taking German jobs by working for cheap.

    They need to resolve these problems.

  9. #9

    Default

    Quote Originally Posted by hiker
    Quote Originally Posted by watch-this-drive
    The German economic miracle since the 50's appears to be under huge threat.
    there economy is very export led because there is no domestic growth
    .
    This is an interesting point. The germans are great at saving. I think on average they save about 15% of annual incomes. They appear to have maintained their exports because they export very high priced, high quality goods. the cost of living is relativly low. they seemed to be poised to expand because they have a huge labour pool dip into.
    You are obviously very bullish on Germany, I dont agree, their growth forecasts consistently disappoint, their unemployment is still growing.
    The huge labour pool you are talking about is costing them fortune because it is doig anything - huge parts of the East are sucking up money like black holes and the Poles et al are on their doorstep offering cheaper labour, thats before their looming pension problem - I think you are being a little over optimistic

  10. #10
    Politics.ie Member
    Join Date
    May 2005
    Posts
    1,961
    Mentioned
    0 Post(s)

    Default

    [quote="watch-this-drive
    You are obviously very bullish on Germany
    [/quote]

    Yep, your right there. For some strange reason I have huge admiration for these people more than any other european nation. I sincerely beleive that they can sort out their difficulties. I acknowledge the points you make but I woulk like to hear from anyone who has an optimistic veiw and why they have it.!!

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •