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Giving Workers Equal Representation on the Board

Co-determination, in principle and practice

Beatrice Weder di Mauro
Wed, 05/23/2018 - 12:02
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As the 21st century dawned, Germany was known as the “sick man of Europe,” with lower GDP growth and higher unemployment than peer nations such as France, Italy, and the United Kingdom. Today, it is widely admired as one of the world’s strongest economies and the undisputed economic leader of the euro area.

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Experts may disagree on the chief cause of the turnaround, but most would concur that it was during the aftermath of the global financial crisis that it first became clear that Germany was on a different economic path from the rest of Europe.

After 2008, unemployment rates across the European Union soared, reaching nearly 11 percent in 2013 before commencing a gradual decline. German unemployment modestly increased in 2009, then sloped sharply downward, remaining at approximately half the EU rate throughout 2013. Consequently, German companies were in an advantageous position to capitalize on rebounding demand post-2010. But how did they manage to retain such low unemployment in the face of collapsing economic activity?

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