„Europe speaks German now!“

A triumph of failed ideas: European models of capitalism in the crisis

Toronto25 April 2012

Steffen LehndorffIAQ / University of Duisburg-Essen

Unemployment rates in Europe (12/2011)

Source: Eurostat

Source: IMK

Source: IMK

Source: IMK

Current account of Germany with Eurozone (bn €)

Source: Deutsche Bundesbank (own calculation)

Nominal wages as agreed in collective bargaining*

* West Germany, 2000 - 2010

Source: Bispinck, WSI Report 6, 2011

The rise of the low wage sector, Germany 2000/2006*

* Wage brackets as per cent of all workers; Source: Thorsten Kalina / IAQ (SOEP)

Labour and capital income, by business cycle

Source: Brenke DIW-WB 8/2011

Internal flexibility in the crisis

Index 2000 = 100Source: IAB

The victim is declared guilty ...

Quelle: IMF (Ball/Leigh/Loungani 2011)

The medicine is killing the patient

Beware the German Model

„It is not just the austerity measures that are crucial. The structural reforms are equally important for me. For example, the labour market reforms in Germany, known as „Hartz IV“, have lead to massive improvements on the labour market.“

Angela MerkelWorld Economic Forum, Davos25/01/2012

http://www.etui.org/Publications2/Books/A-triumph-of-failed-ideas-European-models-of-capitalism-in-the-crisis