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Germany was very shrewd to use the Central and Eastern Europe (CEE) relatively qualified labor force to advance the national competitiveness agenda, after the Wessies have finally though belatedly discovered what a "black hole" the communist East Germany was. With large parts of CEE depopulating, this positive factor is temporary in nature though. Now the challenge is to rebalance sources of German growth, as too much emphasis on exports leaves Germany vulnerable to the vagaries of global markets. Internal demand stimulation should be a big theme, e.g. those vacation homes on Greek islands.
Valdas Samonis
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