The German Resilience

            Many member nations of the European Union, have been badly affected by the global economic 

meltdown, whose inflictions have not healed yet. But, Germany has impressively managed to withstand the 

tumults of the hard times. Its resilience is remarkable. However, the resilience is the reflection of its long-

standing steady growth, which takes into its ambit several factors. This is further consolidated with

 its  quality trend, which has strengthened its reputation in the world market. The nation has witnessed a 

steep decline in the unemployment levels. Germany has consistently, maintained its position in the

 world, as a safe haven. There has been no compromise with quality as far as the German product is considered. However, the price might impede the  sections of the economic ladder, which cannot afford to pay for the products.

        

            The current account surplus is large and the domestic demand has begun stimulating the economic 

growth. However, there are possibilities of hovering clouds of challenges, which the German economy will 

have to face in the following decades. The potential growth is estimated to fall on account of demographic 

changes in the years that follow. The low paid jobs is consistently increasing. Public investment is low. The 

government focus on childcare also, has been on the backburner. Also, the technological progress needs to 

go hand in hand with the reduced carbon emissions. An action plan to address such crucial issues, is yet, off 

the track. The plan needs to be built on the base of the rhythm of the past reforms.

              The positive developments in Germany would be a welcome relief to the global market too, 

because its influence is inevitable. For  instance, the German bank have caused economic ease to the euro 

crisis considerably. However, the atmosphere caused by the  low interest-rate might cause the wind to blow 

in the wrong direction. The high leverage of the country’s largest banks and the government’s guarantees to 

banks, has not been appreciable. Not only has lending growth has declined in real terms but also weak 

demand is witnessed in some respects. However, when compared to other OECD countries, Germany has 

moved ahead with regard to reforms to reduce risks in the financial sector. Further, the government should 

take more steps to the banks more robust. Incentives for banks would improve and benefit would be 

derived by low interest rates. Subsequently, sustainable economic growth can achieved. These 

measures, if undertaken by Germany, should be coupled with reducing high leverage. The 

ambitious implementation of  EU requirements for the reform of resolution of the public banking sector, 

would go a long way in strengthening the economy.