Germany's Not-So-Wunderbar Economy

Merkel has focused on the euro, not German competitiveness
German Chancellor Angela Merkel, right, and Greek Prime Minister Antonis Samaras at the Chancellery in Berlin on Jan. 8 Photograph by Carsten Koall/Getty Images

Throughout the euro crisis, Germany has been the area’s growth engine and enforcer of fiscal rectitude. Now economists and policymakers are warning that Germany may be reverting to some old bad habits. Jörg Asmussen, a European Central Bank board member nominated by Chancellor Angela Merkel, has even predicted that Germany may return to its status as the “sick man of Europe” should its symptoms go unaddressed.

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