Germany’s rising wages bode well for global economy

Analysts warn that while higher wages are a promising start, they’re not enough. “We need chunky growth in real wages for a number of years,” said Simon Tilford, deputy director of the Centre for European Reform.

...“Two hundred billion euros might not sound much in the context of the global economy, but in the context of this global economy at this time [of weak demand], it’s a significant problem,” Mr. Tilford said, referring to Germany’s trade surplus.

...“You basically need the German economy to overheat within the eurozone,” Mr. Tilford said. “I cannot see the Germans allowing that to happen politically.”