The German economy, long the engine of Europe, has been sputtering of late. The nation's gross domestic product has registered little or no growth, the unemployment rate is climbing and, for the second consecutive year, the government budget deficit will top the 3 percent limit set by the European Union.
Thus far, Chancellor Gerhard Schroeder has done little to deliver on his campaign promise to revitalize the German economy. That may be changing, however. His party this week voted to back a package of reforms designed to modernize the country's economy. Acceptance by the public is another matter -- yet few tasks are more essential to Germany's future.
Germany's predicament is plain. The unemployment rate in May was 10.4 percent; 4.34 million people want jobs. While the jobless figures show a decline from April, employment typically increases during the warmer months. More worrisome is the fact that the number of jobless was nearly 400,000 more than a year ago and is the highest level recorded since unification in 1990. Some warn that the number of unemployed people could increase even more by yearend.
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