Despite all of these policies that improve workers' overall quality of life, Germany's output per hour worked was still 96% of the U.S. figure in 2023. So color me skeptical that key the reform needed is greater "labor market flexibility" (i.e. employer discretion in termination).

Germany and the U.S. alike have historically important internal combustion engine -based auto manufacturing that are in great danger of being marginalized by Chinese electric auto manufacturing. Industrial policy to force manufacturers to abandon sunk costs is politically fraught but necessary.