Germany is a country of contrasts. On the one hand, Germans enjoy one of the shortest workdays in Europe, the most efficient national production, and the school curricula letting children spend 25% time less on studying than in Italy, for instance. And still Germany has managed to overcome the crisis and maintain the euro rate by its own efforts. The recipe for success is plain. It is all about national peculiarities and the mentality! To put it in another way, Germans are used to living within their means. The citizens of Germany are censorious about bank crediting and prefer to avoid borrowing money. Consequently, the debt owed by both individuals and legal entities is just minute. At a time when the EU countries rushed to take out cheap loans, Germans tightened their belts and cut spending. They did not even reduce the credit rates.
"In the UK, Italy, Spain, and Portugal, for example, higher inflation meant real rates moved down, so there was a huge incentive to borrow money," David Kohl, Deputy Chief Economist at Julius Baer, concluded.
Add to the national particulars a lusty legislative system and confidence in the government to complete Germany's recipe for economic success.
