Germany Would do Well to Look Towards France

Wolfgang Münchau, Financial Times | June 2, 2008

President Sarkozy has announced that citizens of the 2004 EU accession countries will be permitted to work freely in France beginning in July. ++ This development contrasts sharply with Germany where "borders will remain firmly shut for another three years." ++ While wage modernization and the boom enjoyed by export partners mean that the short-run looks bright for Germany, the country's long-term prospects are less promising and foreseeable future political coalitions will likely fail to produce sensible economic policies.