Some information about the German model: Germany is a social market economy, in other words: The state guarantees

tees the free play of entrepreneurial forces, while at the same time endeavoring to maintain the social balance. The social partnership of trade unions and employer associations is enshrined in the institutionalized settlement of conflicts as outlined in the collective labor law. The Basic Law guarantees employers and trade unions independence in negotiating wages, and they accordingly have the right themselves to select the working conditions. Like all industrialized nations, since 2008 Germany has been affected by the global banking, economic and financial market crisis, which was triggered by speculation on the real estate market in the United States and hit Germany in the middle of a strong growth phase. As an efficient response to the systemic crisis in the finance sector and to stabilize the situation on the financial markets, in the winter of 2008-2009 the Federal Government, like other countries (the United States, France, Great Britain), put together two rescue packages for the banks worth billions and for business introduced two extensive economy stimulus packages. The state programs for repairing roads, schools, and other public buildings proved to be a success, as did the internationally highly regarded efforts to maintain employment levels despite severe capacity under-utilization (short-time working) and the environment incentive for older vehicles (until September 2009). The Growth Acceleration Act passed in late 2009 brought further tax cuts and stimuli for domestic demand.

Some information about the French model: France has long been known for having an economy that suffered from too much government interference, too-high taxes and destructive union activity. Yet it grew 1.4 percent in the second quarter of 2009 French-style pragmatism is spreading across Europe. When financial markets were working well, the Parisian penchant for supporting state-favored industries and national policy objectives was met with deep skepticism abroad. But with the unfolding crisis, the French habit to readily intervene in market processes has become a more widely accepted norm. At its core, the French approach to economic management reflects a deep-rooted suspicion that the free movement of capital may not always yield politically desired outcomes. Unfortunately, the global credit crunch has strengthened this French argument, although closer inspection suggests that much of the financial excesses that turned to waste can be traced back to misguided signals sent by governments and central banks, rather than to alleged private-sector malfunctions France also champions a common-sense approach to labor markets, with a strong emphasis on old-fashioned work ethics and a contempt for socialist lunacies such as the compulsory 35-hour workweek. If the French model continues to gain steam, this may be flippedlabor markets may be allowed to work better, while financial systems may be more regulated than before.