Economic troughs are not a good time for economic integration. Any initiative for more integration in goods and capital markets by reducing tariffs and, more importantly, non-tariff barriers to trade, not to speak of allowing more migration, is futile at a time when countries feel economic pressure. Consequently, Germany’s enthusiasm for European integration has been more than muted recently. Given the dire straits in which the German economy fi nds itself, Chancellor Schröder has distinguished himself as a very outspoken opponent of attempts by Brussels to bring more of the common market to Germany. (It should not be forgotten that Germany is among those bringing up the rear not only in terms of economic growth but also in terms of implementing European law and directives.)
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