19 Feb, 2013
Germany will return to growth in 2013 -
The German central bank is confident that Europe's largest economy
will avoid recession and return to growth in the first quarter of
2013 and beyond.
In a monthly report for a February forecast, the Bundesbank said
that the rest of 2013 will see a gradual pick-up in activity in
The news is widely welcomed in Europe as German economic growth is
indeed key to a recovery in the Euro-zone, which is expected to
start later in 2013.
Meanwhile, Germany's gross domestic product slowed throughout
2012, growing just by 0.7% in 2012, compared with 3% in 2011.
Review shows Germans have
given up on Greece
According to a Financial Times/Harris poll, 'only a quarter
of Germans think Greece' should still form part of the
Euro-zone or even receive more bailouts - a review that has
highlighted Angel Merkel's 'domestic dilemma'.
1,000 adults living in Germany, Italy, Spain, Britain and France
were asked about the Euro-zone crisis. Unlike the Germans, the
Italians and the Spanish respondents 'were far more reluctant to
cut Athens loose'.
Indeed, 26% of Germans believed Greece 'will never repay its
bailout loans', while a stark contrast of 77% of Italians and 57%
of Spaniards had more faith they eventually would.
Similar to the Germans, the French were 'as reluctant' to help
Athens despite the fact that they were 'slightly more optimistic'
that Greece would eventually pay back its bailout loans.
This poll comes just after the new Greek government requested a two
year extension 'to implement painful economic and government
reforms demanded by international lenders as part of their
three-year bailout programme'.
Britons shared similar views to the Germans but they sharply
differed when it came to the question of austerity measures since
only 29% of Britons believes these measures caused a 'negative
impact' in the Euro-zone. On the other hand, the 'overwhelming
majority' of the Germans, French, Italians and Spaniards believed
they were indeed causing a negative wave.