The Importance of Flexibility in the Labor Market

Red tape is clearly a factor in this adjustment. It has basically stalled a low wage sector from a very flexible element of a labor economy, really fully developing. And it's still also a problem within the European Union that the shift of labor within the union isn't as fluid as you would hope. All those phenomenons make the economy less adaptive and will force companies to look more for automation or for again going outside Germany or even the EU to source cheap labor. So there's something has to give there."