What direction should Germany take now?

REDWOOD

Germany has done well out of the euro in recent years. It has become much more competitive than most of the rest of the zone and has enjoyed a large trade surplus as a result.

Euroland has developed a strong appetite for German cars and other manufactured products. This industrial success has attracted talent into Germany from the parts of the zone troubled with high unemployment. Germany has not always done so well from currency unions. The union of the ostmark and the deutsche mark in the previous decade when East and West Germany were united proved expensive. The demolition of the Berlin Wall was great for freedom, but it interrupted strong German growth and caused tensions between the two Germanys. In the early days of the euro, Germany had to work h...