linkages between Germany and the Czech Republic, Hungary, Poland, and the Slovak Republic (CE4) have expanded rapidly …

KEY ISSUES Context: ? Germany fundamentals are sound: balance sheets are generally healthy, unemployment is at a … uncertainty (including about future energy costs), and fast approaching adverse demographic changes. ? Germany could do more to … increase its growth, thus strengthening its role as an engine of euro area recovery. Policy recommendations: ? Germany has the …

-run (noncyclical) unemployment rate in Germany by 1.4 percentage points. We also find that the welfare of employed households increases …

. But Germany has almost equally consistently run current account surpluses. Exports have powered the dynamic phases and … delivery of services, will be good for Germany and for the global economy. Absent such an effort, German growth will remain … constrained, and Germany will play only a modest role in spurring growth elsewhere. …

core. This paper puts recent demand patterns in France, Germany, and Belgium into historical perspective. We find that …