Corporate Germany was on trial last week.

First, a former Volkswagen executive, Peter Hartz, was convicted of a bribery and prostitution probe into the company. The full story from Bloomberg.

Meanwhile in Munich, more than 10,000 angry Siemens shareholders confronted the company's executives demanding answers about the slush funds scandal that has devastated that was once a model of German corporate culture. More in this report from The Guardian.

In VW's case there was evidence that VW executives, their union mates, and politicians spent millions of euros signed off as expenses "in the interests of the company" which included trips to brothels in Germany, Spain and South America, expensive presents for "girlfriends", VIP treatment at Czech nightclubs and discos and luxurious trips around the world. Not good news for the average German who has been doing it hard in an economy that's stagnating, where unemployment is just under 10 per cent and where value-added sales tax has just been increased to 19 per cent.

The other interesting part about the VW saga is the close connection between Peter Hartz, the former union official turned personnel director at Volkswagen who got off with a fine and two-year probation order, and former German chancellor Gerhard Schroder.

And as the Sunday Times points out, the two scandals raise serious questions about German corporate culture, typified by cosy relationships between banks, companies and politicians.

Confronted by the appalling scandal, Siemens boss Klaus Kleinfeld has gone on to the front foot and announced a massive restructure of the company. Kleinfeld has modelled himself on former GE chief Jack Welch.

But as suggested in this piece in Der Spiegel, the question is whether the strategy will work and whether Germany is ready for Welch-style surgery.