The German economy has long been considered the locomotive of the European (and occasionally global) growth seen. Germany seemed the stagflation of the 1970s more successfully survive than many other economies and reunification in 1990 appeared to present opportunities for further growth. But by the time, Chancellor Gerhard Schröder was elected in 1998, many saw Germany as a new “sick man of Europe” – a title assigned to the UK in the 1970s. Impacted by the unexpected high cost of inte … Read more »

The German economy has long been considered the locomotive of the European (and occasionally global) growth seen. Germany seemed the stagflation of the 1970s more successfully survive than many other economies and reunification in 1990 appeared to present opportunities for further growth. But by the time, Chancellor Gerhard Schröder was elected in 1998, many saw Germany as a new “sick man of Europe” – a title assigned to the UK in the 1970s. Impacted by the unexpected high costs for the integration of the former East Germany to West Germany and choked by labor and financial markets, the German economy was dormant no longer seen as a world-beater. In this context, many argued for a fundamental reform of the German institutions, although many of these institutions did Germany have also served for most of the post-World War II period.
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from
Huw Pill,
Ingrid Vogel,
Michael W. lens
Marie-Anne Popp
Source: Harvard Business School
24 pages.
Publication Date: Jun 13, 2002. Prod #: 702 087-HCB-ENG
Renew Germany: Kohl and Schröder’s legacy dilemma HBR case solution

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