tag:blogger.com,1999:blog-6038482834062703600.post4709219240353787194..comments2023-08-06T11:21:40.438+02:00Comments on nickp thinking: Is Germany a bull in the Eurozone's China Store?Nick P.http://www.blogger.com/profile/15577512363021154454noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6038482834062703600.post-57500547182116965922012-08-15T13:05:10.546+02:002012-08-15T13:05:10.546+02:00Thanks for an illuminating post.
Much in German e...Thanks for an illuminating post.<br /><br />Much in German economic thinking strikes me as refreshing: the commitment to building real value rather than simply manipulating financial instruments, the concern with productivity despite a good work-life balance, the consensual approach to industrial and for the most part political relations.<br /><br />Equally admirable is the commitment to quality and to value for money.<br /><br />The upshot is that for a great many types of product they are the only source, or only nearby source - I heard a representative of one German firm talking tonight about the fact that if Athens wants new traffic lights, they have to buy the control systems from Germany because no-one else manufactures them - and even if they have competitors, they're competitive on price and quality.<br /><br />Much less admirable is their apparent failure to perceive that if their customers go down the tube, so do German sales. They might perhaps be able to cope with the bankruptcy of Greece, but if they lose Portugal and Ireland that will hurt more; Spain would be an existential problem for the German economy; Italy would be a disaster.<br /><br />Given that that's the case, they need to stop smashing the china by insisting on austerity policies that are wrecking their clients' economies, and start assisting them to get back to growth. That's Germany's long-term - even medium-term - interest too. Usually they're good at sensing and working for the long term, so why not now?<br /><br />Perhaps it needs a change in government. I rather like Merkel but I'm beginning to wonder whether she's past her sell-by date. The change will come next spring. I hope it'll still be time to make a difference.<br />David Beesonhttps://www.blogger.com/profile/00393977902379776532noreply@blogger.com