It is surely welcome news to find the German citizenry content with Angela Merkel, and that this new found contentment is feeding into more positive views about immediate economic prospects. But oughtn’t we to remember that there is a thing called the first hundred days, and a phenomenon known as the ‘honeymoon period’.
There is also – thank you Nietzsche – something called the ‘will to believe’.
I therefore think, along the lines of ‘one swallow doesn’t make a summer’ that it is a bit too early to be saying that the latest bounce in consumer confidence:
“is the latest indication that a broad-based recovery in Europeâ€™s largest economy could finally be around the corner”.
I think we should wait for a broad-based and sustained recovery in confidence first. What we have is another indication that people are feeling rather better, and that is always good news. But lets just see how they feel when the first ‘reform’ package is unveiled, shall we.
The good news, however, was eclipsed by warnings from economists and politicians that Germanyâ€™s new government should not let rising opinion polls and improving economic prospects get in the way of much needed labour market and social security reforms.
â€œThere is a lot more to be done,â€ Horst KÃ¶hler, Germanyâ€™s president, told the Stern weekly in an interview published on Wednesday. â€œI remain convinced the republic is facing a formidable task that will require decisive action and an enormous amount of staying power.â€