“Be more like us” say German policymakers to their EU partners. But Philippe Legrainwarns that appearances can be deceptive as Germany suffers from stagnant wages, broken banks, inadequate investment, poor productivity growth, a dismal demographic outlook and anaemic output growth

When Germany won the World Cup last summer, it wasn’t just the soccer fans who rejoiced; most Germans are convinced that their economy too is a world-beater. Finance minister Wolfgang Schäuble boasts of it as Europe’s most successful economy, and German policymakers lecture their neighbours on the need to be more Germanic. Chancellor Angela Merkel celebrated her re-election 18 months ago by saying, “What we have done, everyone else can do.”

Not just can do, must do: Germany is using its clout in the EU’s institutions to try to reshape the eurozone in its own image. But the truth is that far from being successful, Germany’s economy is dysfunctional – so trying to impose its model on the eurozone is dangerous for Europe and potentially damaging for the rest of the world.

Germany’s economy is dysfunctional – so trying to impose its model on the eurozone is dangerous for Europe and potentially damaging for the rest of the world
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