European Economy News. No 9, January 2008

As the largest economy in the EU, Germany’s economic performance is of concern to all. However, for the past 15 years it has faltered, partly owing to the burden of German reunification, but also to earlier, growing structural deficiencies. Today, after a long convalescence, it is now powering ahead. The question is whether it has reformed itself deeply enough to ensure a return to the sustained high growth rates of the past – an issue that was analysed in a recent seminar organised by DG ECFIN.