Blistering growth in Germany is aggravating the growing gap between the eurozone’s North and South and may force the European Central Bank to tighten monetary policy long before the high-debt states are ready, Standard & Poor’s has warned.
A separate report by Simon Ward from Henderson Global Investors said eurozone indicators are showing “unprecedented divergence”, with the M1 money supply booming at double-digit rates in Germany but contracting in Spain, Ireland, and Greece.
S&P said Germany has been able to lever recovery off the emerging market boom, leaving Southern Europe behind. German exports – mostly machines and cars – account for 47pc of all EU goods shipped to China. France is a distant second at 10pc.