Does a weak German economy lead to a particular reaction by the ECB?

The German economy was weak in the early 2000s under the effect of poor cost competitiveness and policies to reduce labour costs. It is now weak again due to problems in the capital goods and automotive industries. In this unusual situation where growth is weak in Germany relative to the rest of the euro zone, are there signs of a particular reaction by the zone’s monetary policy? In terms of the ECB setting the euro repo rate, we find a significant reaction to the composite PMI differential between Germany and the euro zone as a whole. This reaction appears to be large: 25 basis points for a 1 point differential in the PMI .