many other euro-area coun-tries - declining demand within the euro area weighs on German exports and consequently on … rise by 1.8 % in 2012 compared to 2.3 % in 2011. The outlook for 2013 is mixed: Exports to countries outside the euro area … will rise more rapidly, whereas exports to euro-area countries will slacken further due to the severe austerity policies in …

importantly, the sovereign debt crisis in the euro area is unresolved and taking its toll. The crisis countries are experiencing … also turning to fiscal consolidation. This will dampen economic activity in the euro area, the main market for German … crisis in the euro area. A comprehensive approach is needed that involves a guarantee of existing government debt and high …