Photo: Flickr / Schodts
More signs that the Germany economy is finally buckling to the crisis and the economic pain of its neighbours.Yesterday it was the Markit Flash PMI which confirmed some of the sharpest deterioration in business since the last recession ended and the crisis began.
Today: The Ifo Business Climate Index, which is a very high-regarded and closely watched index of business confidence run by the Ifo institute.
The Index fell to 105.3, below the 105.6 that was expected, and well below last month’s 106.9.
According to Bloomberg’s Linda Yueh, this is a 2-year low on the index.
The German economy has been one of miraculous strength, but there are no miracles. An export nation can’t continue to thrive if its customers are broke.
Couple this trend with the push by the rest of the Europe to get access to the German Treasury (in the form of Eurobonds or bank deposits or whatnot) and you start to see how the German state comes under extroardinary pressure on multiple fronts.