Germany's low-wage policy gives the country an unfair advantage for its exports and thus is keeping the troubled eurozone countries from recovering, according to a new study.

The report was published by the Rosa Luxemburg Foundation, which is closely associated with Germany's socialist party Die Linke.

German unit labor costs haven't changed since the 1999 introduction of the euro, the study states, according to CNBC.

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"With German unit labor costs undercutting those in the other countries by an increasing margin, its exports flourished and its imports slowed down," study authors Heiner Flassbeck and Costas Lapavitsas said.

And the idea of remaking southern Europe in Germany's image isn't a good one, they argue, CNBC reported.

"In this reasoning, a rejuvenation of the EU and a better future for all can be brought about when all countries that are now in crisis copy the German model," the report stated.

"'Structural reforms' aimed at lowering wages are bound to fail. If pursued in many countries simultaneously, the result of wage cuts will be a dramatic drop in domestic demand in all these countries and a collapse of the trade flows between them," the authors said.

"In Germany, wage cuts directly reduced domestic demand; however, in all European countries domestic demand constitutes by far the largest share of total demand, and therefore wage cuts would cause unemployment to rise further."

Gross domestic product in the eurozone shrank 0.2 percent in the first quarter.

"We don't see policymakers lifting a finger anywhere in Europe," Carl Weinberg, chief economist at High Frequency Economics, told The New York Times.

"But this is a depression, rather than a cyclical downturn, and there must be a policy response if things are going to get better."

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