crisis or cure: no hope for germany?
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crisis or cure: no hope for germany? albrecht rothacher1 European Commission, Rue des Hiboux 81, Brussels B 1150, Belgium E-mail: [email protected] doi:10.1057/palgrave.eps.2210052
Books reviewed: Das System. Die Machenschaften der Macht Hans Herbert von Armin (Munich, Knaur, 2004), 486pp., ISBN: 3 4267 7658 8 Die deformierte Gesellschaft. Wie die Deutschen ihre Wirklichkeit verdra ¨ngen Meinhard Miegel (Berlin, Propyla ¨en, 2003), 303pp., ISBN: 3 5490 7154 X Auf der Suche nach einer ¨ offentlichen Moral Helmut Schmidt (Munich, Goldmann, 2000), 268pp., ISBN: 3 4421 5071 X Jenseits des sozialen Marktes. Eine notwendige Neuorientierung der deutschen Politik Horst Siebert (Munich, DVA, 2005), 539pp., ISBN: 3 4210 5848 2 Ist Deutschland noch zu retten? Hans-Werner Sinn (Berlin, Econ, 2004), 579pp., ISBN: 3 4301 8533 5 Deutschland. Der Abstieg eines Superstars Gabor Steingart (Munich, Piper, 2004), 303pp., ISBN: 3 4920 4615 0
P
ostwar Germany has always had a penchant for hypochondriac introspection, from dying forests to nuclear radiation from various sources. Literature on Germany’s current malaise as the largest among the sick men of Europe now fills considerable shelf space in the major bookstores, almost winning over astrology and rebirthing. From scholarly analysis to journalistic tracts, there is clear consensus that our patient is not
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only sick but seriously diseased in fact. Yet on the diagnosis, whether the affliction is terminal or curable, and on the treatment, whether orthodox operations, homeopathy or faith healing is called for, disagreement predictably persists. When a country is mired in economic stagnation, with its competitiveness eroding and its public finances in a mess, incidents of public corruption increasing and its social cohesion and generational
european political science: 4 2005 (464 – 475) & 2005 European Consortium for Political Research. 1680-4333/05 $30 www.palgrave-journals.com/eps
equity unravelling, then obviously authors are free to enumerate any personal dislike – from metropolitan graffiti to unwanted immigrants – as contributing to decline. Clearly, the most solid case and most comprehensive evidence for Germany’s current ills is presented in the voluminous studies of Hans-Werner Sinn and Herbert Siebert, which represent neoliberal economic orthodoxy. Both recognise the erosion of Germany’s competitiveness over the years, caused by a seriously overpriced labour market and poor public education, compounded by the steep taxation of labour, a dysfunctional welfare system and a regulatory environment hostile to entrepreneurialism and innovation, and declining public services, notably producing disincentives to procreate. For Ludolf von Wartenberg and HansJoachim Hass (2005), the German economy has passed its zenith. Global leadership has passed to the economies of North America and East Asia so that just to keep an intermediate position requires continuous struggles against persistent inertia. An expanded welfare state along with Germany and the European Union
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