Nevertheless, there is a heightened danger that financial market turmoil affects the real economy. Thus, it is crucial to find a prompt and consistent political answer to the sovereign debt crisis in order to reduce downside risks. 4.
Fiscal discipline and the European sovereign debt crisis  In addition to its robust economic conditions, Germany is an anchor of stability within EMU through the high level of confidence in the sustainability of its public finances as well as through its financial support to those countries within EMU which currently lack this confidence.