It is often argued that globalisation is eroding differences between national varieties of capitalism and enforcing convergence. This study takes up the debate – triggered by declining economic performance – about the viability of the ‘German model’ of a coordinated market economy, examining the arguments about its alleged seminal transformation over the last decade. It goes on to identify a number of flaws in the literature and questions whether the case for fundamental change in Germany has really been made in a credible and convincing way. In addition, it points to significant elements of continuity in areas such as industrial relations and emphasises the importance of political decisions in determining the fate of national economic models.