Political Reprieve: Merkel Can Relax With this German Economic News
The German economy continues to heave forward as best it can, a seemingly unstoppable force attempting to hold the tattered European Union upon its shoulders. Economic expansion for the quarter ending in June represents the most in a year as German consumers put their money to work and firms were all too happy to see the action. Expansion from the quarter was 0.7 percent with 0.5 percent of that coming from ever stronger German consumers.
The news is certainly politically convenient for Chancellor Angela Merkel, whose reelection campaign is seen as crucial to holding together a European economy that is just recently finding its swagger. The positive numbers also give Merkel some relief — or at least a distraction from her finance minister’s remarks recently about Greece needing a fresh bailout.
Wolfgang Schaeuble told a crowd of supporters recently that given the weak state of Greece’s finances that it was likely more funding would be needed. ”There will have to be another program in Greece,” he is quoted as saying.