Report
Patrick Artus

Does Germany become more cooperative or less cooperative when it is in trouble?

Germany will be in trouble, given the inevitable contraction in its industry while the weight of industry is very high. We can then imagine two possible ways that Germany will behave towards the other euro-zone countries: A non-cooperative behaviour: Germany lowers its corporate tax burden and implements wage restraint as in the Gerhard Schröder era; it will then recover at the expense of the other euro-zone countries; A cooperative behaviour: Germany seeks ways to stimulate the euro-zone economy. This could involve a common public investment budget; the use of Germany's excess savings to invest in Europe but not in the rest of the world, which would give rise to a more dynamic domestic market in the euro zone, which would be positive for Germany.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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