Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
I agree they need to rise.
But even then, I think, much of the problem would remain.

Well, maybe not in the long run. Or medium run possibly, but long enough for implosion.

I can't imagine that production would move all that fast from Germany to the periphery once German wages rise -especially since regional economics are at play, and there is a need for clusters.
Plus, is that really desirable? Waves of industrial migration?

It does make sense to have some level of long term specialisation between countries, but then there will always be asymetric shocks and we'll need transfers. Significant ones at that.

It should not be a problem for a union. That it is one shows that we are anything but.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Wed Aug 29th, 2012 at 01:46:06 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

Occasional Series