Europe’s reluctant hegemon | The Economist

Europe’s reluctant hegemon | The Economist:
From the football pitch to politics to the economy, Germany has become Europe’s most powerful country. Described by this newspaper as the sick man of Europe in 1999, Germany now appears to have the continent’s strongest as well as its biggest economy. It accounts for a fifth of the European Union’s output and a quarter of its exports. From Volkswagen to SAP, Germany’s big companies are world-renowned. Many smaller German firms are global champions in niche markets such as tunnel-boring machines and industrial cleaners.

Germany’s jobless rate, at 5.4% (using standardised OECD statistics), is less than half Europe’s average. Youth unemployment, a scourge throughout much of the rest of the continent, is at a 20-year low in Germany. The country’s budget is balanced, government debt is falling and long-term bond yields are the lowest in Europe. It is the largest creditor country in the euro zone, and as chief paymaster it has the biggest clout in determining the single currency’s future.