Economics at your fingertips  

Germany and Greece

A Mapping of their Great Divide and its EU Implications

European Research Studies Journal, 2018, vol. XXI, issue 3, 14-42

Abstract: George C. Bitros1 The economic constitutions of Germany and Greece have resulted in the post-war period in two economies that are based on two vastly different philosophies. Germany has built a highly competitive, outward looking economy based essentially on the principles of the so-called "Social Market Economy", whereas Greece has set up a "state-managed economy" by drawing on the principles of central planning and administrative controls. This divide is equally stark, if assessed on the basis of the performance of the two economies. For, as it is known by now, Germany has become once again the powerhouse of Europe while Greece has gone bankrupt. As to the implications of this great divide for the future of the EU, its identification and mapping helps understand why convergence criteria on the basis of economic performance and living standards should be abandoned in favour of criteria based on the widening and deepening of the four European freedoms. A multispeed Euroland enmeshed in these freedoms is going to be more democratic, more cohesive and a much happier union for the European citizens to call homeland.

Keywords: Social market economy; central planning; economic performance; structural differences; four European freedoms. JEL Classification: E02; F02; P51; H1; L5. Read the Full Paper here (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().

Page updated 2018-11-29
Handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:14-42