There was no mention of the tremblors from China and India and their increasing impact on the german economic machine. All the west is feeling the bite in profits and the pressure is rising. Chemicals and pharma (both generic and ethicals) industries worldwide and especially those in germany will be nailed. no matter how good the german engineering is (and the japanese are better), it won't overcome it.

robert, Illinois,

This is a German living in England for most of his life writing, and I must say "sclerotic" is hardly an accurate description of present-day Germany. Throughout the midst of economic lethargy, the German government continued its usual investments into public infrastructure, creating one of the best railways in Europe and allowing the former state postal service to become the world's largest logistics provider. Germany may have suffered from the infamous "shake-out" of globalization and the hurried integration of the East German economy, but this globalization shock has been, to a large extent, absorbed. Maybe this could remind the UK of its "Third Way" ambitions, and that it also has a European identity in taking seriously a variety of public services. That the "Quality of Life" may as well entail a society not only held together by the false promise of equal opportunity, but by actual justice in economic distribution.

Martin Schoenberg, London, UK

I can’t offer any comment on the fiscal/monetary position, but I can’t see how Germany could possibly follow the Anglo-Saxon way. We can’t all be service economies and German engineers have been consistently better than the anglo-saxon. Besides, there is the forthcoming growth of the former eastern European states, and Russia; which transforming prospect you don’t seem to mention.

Henry Percy, London, UK

Having read Malcolm Turner's comment I do not interpret it as mourning for the apartheid sysyem where 'everybody
knew their place'.
One might just as well ask of Mr Prosser "do you really like to see violence and poverty flourishing in today's South Africa?"
Curse those ' well-intentioned ' commentators with their pesky notions of law and order!

SF, Birmingham,

'Once everyone knew their place now no one does'
Yes thats right lets have people beaten tortured and kept in squalor both here and in Germany

A fatuous statement

maximillian, London,

Mr Kaletsky you talk as though a property boom (that is, asset price inflation) is a virtue. What a strange state of affairs when asset price inflation, deepening debt, balance of payments problems, and the massive growth in liqudity now come to be regarded as a sign of economic success! Whereas fuddy-duddy notions like trade surpluses, saving and investment are regarded as a vice, a sign of failure - 'sclerotic' being the usual epithet. Dear me, I know which side of the Atlantic/English Channel I'd rather be

Frank Lee, Hackbridge, surrey

Rather off point I know, but I consider Anglo-Saxon to be a racist term. If you mean the Anglo-American economic model, then say it. Anglo-Saxon is an archaic term frequently used by the French media as a slur. It does not and has never reflected the ethnic diversity of the British Isles or America

James, London, England

While German growth figures haven't been stellar in recent years, the country isn't exactly an economic basket-case.

Germany is the world's leading exporter, outperforming the showcase UK economy by more than 2:1. Official GDP per Capita figures now looks marginally better in the UK than Germany but commuting between the 2 countries on a regular basis over the last several years gives a completely different picture: Germany functions as a society; with an effective healthcare system, transport infrastructure and social-security system.

W.r.t. Malcolm of Alsager's observation about South Africa; I would more liken large parts of US and UK cities to the lawlessness of Jo'burg than any Germany city.

I'm afraid it's one of those stories being peddled by the UK press to reassure 'little Englanders' they never had it so good. As a frequent-travelling Englander, I can tell you that there is still some way to go before the UK enjoys the same living standards as its near neighbour.

Ad, Nottingham, UK

Is Malcolm Turner really mourning the dismantling of the South African apartheid system where everybody 'knew their place'? Curse those 'well intentioned liberals' and their pesky notions of equality and civil rights!

David Prosser, Oxford, UK

Anatole,
Any growth achieved through Euro-Japanese model is bound to be staggered and in stages over decades for even reasonable gains in economic factors and will inadvertently be bound by and dependent on successive tax increases. Much the same as Anglo-American model depends on an ever-growing demand of products and expanding growth market dictated by privatised market, the Euro-Japanese formula will depend on the expanding tax revenue and wisdom of public institutions. Thats where Japanese model will fail over long-term because it will simply stifle creativity and resilience. Although before that is realised generations will suffer its consequences.

Prabhat, UK,

Anatole

This is a very interesting article. However, I am afraid you totally neglect the recent welfare reforms in Germany which have an impact the labour market and hence growth. Would be interesting to know if they had somehting like that in Japan.

Dirk, London,

Germany is becoming a different place. I detect pronounced coarseness and lowered standards. I am a little sceptical of Germany's future from a social standpoint. Whether or not this is anything to do with the economy or not is a matter for conjecture. Formerly, Germany represented hard work and restrained leisure. The sight of villagers sweeping out bus shelters was not uncommon, a sort of robust statement of the common good. That is a dwindling vision. In South Africa we see the dangers, the actions of well intentioned liberals falling apart in practice. South Africa has become lawless and edgy on the back of indirection. Once everyone knew their place now no one does. In Germany there is a similar phenomenon. As with Britain and America, in Germany you have two peoples divided by the same language; the influx of Easterners is as socially destabilising as is mass immigration here. A happy worker needs a strong state, a sense of permanence, to flourish.

Malcolm Turner, Alsager, England

Germany is export-led but "Made in Germany" is really the end of an assembly line where the manufacturing is done in Slovakia or Hungary and final assembly in Germany. The increase in VAT from 16% to 19% boosted Christmas retail sales but incomes are squeezed by a greedy State finding more and more reasons to appropriate incomes and the horror of the Miet NK which means gas and electric and water bills are not capped like rents and so a huge explosion in housing costs is forcing down real incomes.

Germany is sclerotic and tied up in regulation. The private sector exists simply to fund the State which has mushrooming deficits and record emigration of the educated and young to escape being crushed by Leviathan

TomTom, Leeds, England

You just can't take it ,can you?Europe doing so well,Germany in particular.Viva the euro!

Joe Dignan, Warrington, England