经济学人外刊原稿(3)

His labour-market reforms reduced

unemployment

benefits and liberalised temporary

work. Since she became chancellor in

2005 Mrs Merkel of the Christian Democrats has raised the pension age from 65 to

67 and amended the constitution to require state and federal governments to cut

their structural budget deficits to more or less zero (the template for what is now a Europe-wide agreement).

Benefits thought to be sacrosanct were cut. Income inequality rose. But so did employment.

Core workers in industrial

firms- the muscle behind Germany's

manufacturing prowess- were not affected directly. But the rise in low-paid, insecure jobs has held down the cost of services, making it easier for factory workers

to accept modest pay rises, points out Anke Hassel of the Hertie School of Governance

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