1. Eliminating wage & price controls
2. Reducing the currency supply by replacing reich with less deutsche marks.

2007 Opportunity to Learn From History
In 2007, the world watches with bated breath at France's attempt to reform its limping economy. Mr. Sarkozy's policy of piecemeal reform is well intentioned but may well lead to protracted strife and ultimate failure. Much as Ségolène Royal, his socialist opponent, decries what she calls a brutal approach to reform, just such an approach may be the only effective way to achieve it. The model should be Ludwig Erhard, the father of Germany's Wirtschaftswunder who abolished all controls over that country's eonomy in 1948 with spectacular results.

Abolishing the French government's iron grip on hours worked, employment, wages and prices in one fell swoop would likely lead to no worse disturbances than the present and would ease further reforms down the road. It may be Mr. Sarkozy's only opportunity to achieve his objective. Success there may have the added benefit of reminding Germany of Ludwig Erhard's legacy.