The weakening of global demand for industrial products is weakening Germany: What consequences for the rest of the euro zone?
There is a global weakening of demand for industrial products of all kinds (cars, capital goods, intermediate goods, even consumer goods). This weakening is leading to a very clear weakening of the German economy (declining industrial production, especially for cars, due to the decline in exports). Sluggish growth in Germany: Contributes significantly to interest rates remaining low in the euro zone; Leads to a further weakening of the euro-zone countries that have large-scale exports t o Germany: France, Italy; Will weaken the Central European countries’ economy; Will probably not be sufficient to change Germany’s view on the euro zone’s fiscal policy.