There was a particularly sharp rise in exports to non-EU countries, especially to Russia and China. Gratifying as the German economy’s export successes are, one must not lose sight of the flip side of this export bias. The German economy is also vulnerable to changes in the global cyclical climate, and this, in effect, constitutes the German economy’s Achilles’ heel.
It is nevertheless important that the euro-area countries have expressed their intention, should it prove necessary, to take decisive and coordinated action to ensure financial stability within the area. The public finances in many countries will be increasingly burdened in the coming years by costs associated with population ageing and climate change.