Dan O’Brien
March 15, 2013

Yesterday marked the 10th anniversary of the launch of the most far-reaching economic reform package any major Europe an country has undertaken in recent decades.

Germany ’s Agenda 2010 reforms, implemented by the then Social Democrat-led coalition, sought to shift incentives so that work was a preferable option to welfare for as many citizens as possible.

Agenda 2010 worked spectacularly well, as the chart shows. Now nearly three out of four Germans of working age is in employment. That is not only the highest among the large euro zone economies, but Germany is the only large economy in which the employment rate has risen since the middle of the last decade.

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