Sources of ‘otherness’ Deep stereotypes Recent stereotypes Real differences Misconceptions
Deep stereotypes Schools, families, armies Turks Bulgarians Germany does not fit WWII, but … Europe Migrants Cars and football
Recent stereotypes:Populist Collapse of trust Trust in EU: 60% (Nov 09) to 19% (Jun 10) Blame for crisis Occupation of Greece Domination of Eurozone Cruelty
Recent stereotypes:Moderate Calvinist Schuld and punishment Rule bound (and hypocritical: Siemens, Landesbanken) Historical trauma Hyperinflation Power play Export more, buy cheap assets, gather savings
My hope Because stereotypes are recent, And constructed by elites, They can be reversed by politics. But for this, We must understand our real differences And accept different roles in the EU economy
Real differences Technical education Home ownership Family polyergy Stay at home with parents
A counter narrative Underachieving Germans Prefer to be nurses, not doctors Do not invest in proper education No real assets Prefer salary to risk Part-time workers Low family cohesion Plausible ?
Culture MattersGermany GreeceCooperation SelfishnessRules OpportunityProgramme FlexibilityState FamilyIn an industrial world,‘German’ values have a competitive advantage.Will it be always so?
Mismatched rationalities Paper assets of the core countries and Real estate of the periphery
Misconceptions1. Governments need discipline But private sector is self regulating2. Banks must be unified But only states and banks transmit deficits3. Market regulation must converge Because competitiveness is a matter of barriers4. What next? Macroeconomic imbalances
Strategies for eurozone stability Convergence Fiscal and banking Targeted diversification Industrial policy/ Marshall Plan Transnational integration Foreign direct investment Transparency To understand each other