Something is Moving?
A picture of Germany somewhat different from the recent past emerges from two articles in the Financial Times of March 30:
- The first shows that, in a framework of decreasing unemployment, Germany’s domestic demand shows signs of vitality. Investment, and more remarkably consumption, increased moderately in 2011 and are forecasted to continue this year. Contrary to what happened in 2009-2011, most of growth for 2012 should come from domestic demand. This goes with (finally!) increasing wages, and some signs of price increases.
- The second article reports discussions on the ratification of the fiscal compact, with some parties in the Bundestag calling for a stop to austerity and for more solidarity towards troubled countries.
This does not mean that the overall stance of Germany will become openly expansionary, as would be sorely needed. But it is at least an indicator that the German domestic context is less monolithic than it used to be. This cannot be bad…