Germany is the problem

I Do Not Think That Number Means What You Think It Means by Krugman

"What we see is that Italy is somewhat out of line — but the real standout is Germany, which has had much too little wage growth. And this in turn suggests that if we’re looking for the key to European problems, it lies in Germany’s beggar-they-neighbor relative wage deflation — which is indeed a point made by economists like Francesco Saraceno."

Labour Costs: Who is the Outlier? by Francesco Saraceno