A strong German economic performance helped drive better-than-expected second-quarter growth in the euro zone.

The combined GDP of the currency zone's 16 countries grew 1% from the first quarter, The Wall Street Journal said.

That's the strongest quarterly performance since 2006, and easily beat the 0.7% forecast by economists surveyed by Dow Jones Newswires.

"Today's numbers are a clear sign that the euro zone has coped with the sovereign-debt crisis better than expected," Carsten Brzeski, an economist at ING, said in a research note.

Germany, Europe's largest economy, grew 2.2% in the second quarter, driven by a high demand for the country's exports. It was Germany's fastest quarterly economic expansion since reunification in 1990.

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GDP is one measure of economic performance...

We have seen several articles that suggest that we look at Germany's policies and consider adopting some of their practices. Some people will focus on their social programs (health care, employment practices), some will look at their export based economy, and some will look at the fiscal restraint of their government. Sometimes you need to look at the picture as a whole, instead of each part...

Since we are participating in a global economy, and since we and other countries have chosen a path of government intervention with respect to currency, banking and economics; then, we need to adopt our policies to level the playing field and not subject our population to being financially exploited.

Specific to Germany, where the government subsidizes their export based economy and restricts imports (protectionist policies), if we can't lower their import barriers, then perhaps we should consider recipocal policies for the import of their goods and services... I recognize that protectionist actions taken in the 1930s delayed the global recovery - but they laid the groundwork that allowed us to become the largest and strongest economy in the world, up to the 1970s when policies started shifting...

August 13 2010 at 8:31 AM Report abuse +1 rate up rate down Reply