Germany`s disappointing economic performance causes political upsets. If the next government intents to be more successfull than the current one, fundamental reforms are to be enforced. Germany`s inadequate federal system is a major growth obstacle. The country forgoes the benefits of...

The article advances the hypothesis that Germany is unable to increase its gains from trade dispite increasing trading volumes. High and rigid German wages largely result from the minimum wage constraint imposed by a welfare state that offers generous replacement incomes. Confronted by low-wage...