Don't Blame Kohl For Germany's Woes
I have read BUSINESS WEEK's comments about Germany's future which, in my view, do not provide the full story ("A fiasco for Germany," European Business, and "Germany needs real tax reform," Editorials, Aug. 18-25). The articles blame Helmut Kohl for not pushing through overdue reforms--especially tax reform.
Under the German constitution, fundamental reforms like those must also be supported by the states, a majority of which are opposed to the ruling government in Germany. The Social Democratic Party and the Green party have blocked virtually any reform, especially tax reform, for one year--with the consequence of discouraging investment in Germany.
One could argue that Kohl should compromise with the left-wing parties in Germany, but these would be bad compromises. It looks as if we in Germany need more bad news before we wake up. The improved economic situation is just hiding the real problems.