Germans would have been in the streets by now. And Chancellor Gerhard Schroder would be fighting for his political life. Instead, the euro's nosedive in the 16 months since its launch is such a nonissue in Europe's biggest economy that opinion pollsters no longer bother even to ask voters questions about it. You don't have to look far to understand why. A weak euro is a windfall for German business, because the economy is rooted in manufacturing.
Exports account for a quarter of gross domestic product.
But Germany's political and business elite needs to get more worried about the dangers that are lurking on Easy Street. The country still has a lot of work to do to build a truly globally competitive economy. It needs more flexible labor markets and tax reductions, as well as pension and welfare reforms. Business must keep cutting costs and boosting productivity. Unfortunately, the temptation to coast on the weak euro is strong.