Germany has become different since the Grand Coalition

Since the CDU-SPD Gra nd Coalition (Gro K o) was formed in December 2013, Germany's economy has become really different: Rapid growth in wages and unit labour costs, inter alia due to the introduction of the minimum wage; Skewing of income distribution in favour of employees and declining profitability; Rapid deterioration in cost competitiveness, affecting Germany's market shares and the vigour of manufacturing production capacity; Household consumption replacing investment and exports as the growth driver. Germany has therefore shifted from a supply-side to a demand-side economy, which has slowed its growth - and it is only because of the rise in the household savings rate and the restrictive fiscal policy that its foreign trade has not deteriorated. But this transition from a supply-side to a demand-side economy is worrying for the future, given the deterioration in the conditions for the supply of goods and services.