Das Modell

The German model of economic organisation has got a lot more coverage since I discussed it in relation to the British debate earlier this year (see posts of 20 February and 25 March). No doubt the high profile it has had in the French presidential election campaign, through its avid promotion by Nicolas Sarkozy, is a key factor. As a result this week’s Economist has a leader on the subject as well as a briefing article.  Among the useful points made in its comment piece:

“Germany’s corporatist Mitbestimmung [participation] model, which gives workers a say in management, has made it easier both to push through structural reforms and to hold down wages.”