Deutsche Bank Chief Economist: 'Greece Is a Crucial Test' for Euro

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SPIEGEL ONLINE: Don't the problems run deeper than that? Shouldn't we say instead: The whole idea of the euro has not worked? The stability pact has failed. The competitive conditions in euro-area nations vary widely, and the disparities in labor costs can no longer be compensated for through currency fluctuations.

Mayer: The stability pact certainly has problems that need to be fixed. But there have also been many positive experiences with the euro. The European Central Bank has ensured price stability and is one of the most respected central banks in the world …

SPIEGEL ONLINE: But isn't it time for a common European economic governance, to eliminate all those problems?

Mayer: European Commission President José Manuel Barroso wants to settle on a package at the next EU summit that will at least move in that direction. "Europe 2020" envisions targets for employment quotas and education spending to be met by 2020. But I don't expect much from these grand plans. It reminds me of the Lisbon Strategy of 2000. Its goal was to make Europe the world's most competitive economic zone within a decade. That didn't work, as anyone can see.

SPIEGEL ONLINE: But Barroso isn't the only person who wants to coordinate economic policy in Europe. Germany itself has to listen to sharp criticism from its partner countries because our strong exports and apparently cheap wages are allegedly damaging other EU states. Are we the bad Europeans?

Mayer: Of course not. We can't really apologize for the ability of our industries to compete internationally. But the accusations point out a problem that doubtless exists and can be damaging: the German trade deficit. It's a problem because in the near future, all EU states will have to start reducing their debts. It will be the task of the century. At that point it will be inevitable that our neighbors will buy less from us, because they don't have the money. So it's also in our interest to create more balance in this relationship.

SPIEGEL ONLINE: Euro zone chief Jean-Claude Juncker is correct, then, when he demands higher wages in Germany? And when he says the process should start with salaries of civil servants?

Mayer: Once again: You can not apply the brakes to competitiveness artificially. That's crazy. Instead we should better promote the domestic economy to compensate -- especially in the services sector. For example, we spend far too little on education -- among OECD nations, we are in the lower middle class. But it's clear that our strong export industry, for now, is a blessing. According to our forecasts the global economy will grow by 4.5 percent this year. In China, gross domestic product will climb by 10 percent, and Brazil is also booming. Because we are well-positioned in these markets, Germany will also have growth of up to 2 percent once again.

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• Part 1: 'Greece Is a Crucial Test' for Euro
• Part 2: 'We Can't Really Apologize for the Ability of Our Industries To Compete Internationally'