Professor Paul de Grauwe, from the London School of Economics, said the Schröder era has taken on a mythical importance. In reality the Hartz IV measures did little for German productivity and investment. Germany regained competitiveness by compressing wages at time when southern Europe was overheating, he says. A global boom further cushioned the shock for Germany in the crucial years from 2004 to 2006. France faces a tougher task today’s deflationary world, more akin to wage cuts under the Gold Standard in the 1930.