As if by magic, industry has become all upbeat about the prospects for the German economy – just in case anyone had the impression companies were about to start firing workers en masse after an upcoming federal election.
This was the tone of a German newspaper editorial this week which said “what a coincidence” it was that sentiment had shot up in the weeks before the Sept. 27 vote.
“Some pronouncements give rise to suspicion that interest groups are trying to pacify the electorate ahead of the ballot box,” the Neue Westfälische daily wrote. “The motto seems to be: don’t draw any more conclusions from the crisis, it really wasn’t that bad after all.”
Just two months ago, a number of leading think tanks said a forecast by Chancellor Angela Merkel’s government that the economy would contract by six percent this year was not pessimistic enough.
Now surveys show German business morale is now at its highest level in nearly a year, financial market analysts’ expectations for the economy have climbed to a 40-month peak, and an increasing number of bank economists have forecast Germany will bounce back from the crisis strongly next year.