Spotlight on Germany
With the sovereign debt crisis enveloping some parts of the euro area the financial markets have intensified their focus on Germany. Political decisions and trends in Europe's largest economy have a major impact on the progress of European integration. Much will also depend on how well Germany can maintain its economic strength. Thus, not only ground-breaking decisions for the euro and the European Union but also resolute reforms for sustainable growth are needed. Correspondingly, we cover a broad spectrum of issues: Deutsche Bank Research offers near-term analyses and comments on Germany's economic, fiscal and European policies, political trends, and the cyclical and sectoral outlook for German business.
Standpunkt Deutschland
The economics of sanctions: The West can afford to be tough
So far the West has chosen a reluctant approach in its attempt to contain Russia’s encroachment in Ukraine, refraining from economically or financially meaningful sanctions. The Ukraine crisis and further sanctions will not be inconsequential for the profile of the European recovery, but when looking at the distribution of costs, it seems that the West can afford to be tough towards Moscow. Obviously, the economic cost would be higher if Russian supply of energy to the West was jeopardized, but this would come at a very high price for Russia itself. [more]
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