Will the slowdown in the German economy make Germany more cooperative?
As long as Germany’s growth was strong, driven in particular by exports to the rest of the world and by rapid growth in wage incomes, Germany had no incentive to cooperat e with the other European countries. Comparing their problems with its prosperity, Germany could attribute these problems to the lack of reforms in these countries. But German growth is now going to slow: global trade is slowing, the automotive industry is struggling and the profitability of German companies is declining. One important question for Europe is whether a slowdown in the German economy may lead Germany to adopt a more cooperative stance with respect to the other European countries, in particular to try to inject some vigour into domestic demand in Europe.