Germany’s Marriage to Austerity: Little Chance of a Quick Divorce
Germany’s Marriage to Austerity: Little Chance of a Quick Divorce

Summary/Abstract: The German government’s belief that the best recipe for return to growth in the euro area is a combination of budget cuts and reductions in wages is one that is faced with constant, if not rising scepticism in Europe. However, hopes that Berlin will drop its austerity approach should be kept in check. The country’s economic culture, doctrine, form of capitalism, as well as economic interests all speak to the policy’s durability than its quick departure.

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