Germany's psychosis of defeat: a long-time admirer tells how Germany, like the United States in the 1970s, faces a profound crisis of confidence.

The International Economy | September 22, 2004| | Copyright

Can Germany hold its own in the new world of a reconfigured Europe, an ascendant China, and a 21st-century America? Is German economic decline exaggerated? Or inevitable? These were questions I addressed recently at a meeting of Atlantik-Brucke, the German-American friendship organization.

The answer to the first two questions is "no." Unless it rapidly changes course, Germany cannot hold its own in the present world of a newly configured Europe, a rapacious China, and a flexible, highly adaptive American economy. German economic decline is, if anything, understated ...

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