Is Germany falling prey to the eurocrisis?

Signs emerge that the German economy is faltering

After months of Germany playing reluctant parent to Europe through its financial woes, there are emerging signs that the German economy may be taking a hit itself.

Business Insider has reported that the latest manufacturing Purchasing Manager's Index (PMI), which measures major orders of goods and services by firms in manufacturing and non-manufacturing industries in the private sector, is showing a 36 month low, having fallen by 1.6 per cent this month.

This fall in Germany's PMI measure has been accompanied by an increase in the Spanish Exchange Traded Fund (ETF), the EWP against the German ETF, the EWG. These measures show that Spain's EWP has increased by 1 per cent whilst Germany's has fallen by 1 per cent.

Joe Weisenthal also points out that the Ifo Business Climate Index, a key measure of business confidence in the country, fell:

The Index fell to 105.3, below the 105.6 that was expected, and well below last month's 106.9.

Weisenthal explained this data as showing:

First of all, Germany's economy, as we've been writing about is cracking (finally) as all of its export markets are deteriorating.

More importantly, there's a growing sense that Germany is going to be on the hook, in some way or another, for the debts of its peers.

So even if the economy deteriorates, the Spanish market benefits from the fact that it may not go completely bust.

With the German economy begining to falter, he offers one final note of optimism:

An optimist might say that this is the best thing that could happen to Europe. After all, until Germany's economy weakens, it really has no incentive to see any kind of change, let alone economic stimulus, in Europe.

That said, Matt Yglesias at Slate has doubts:

The fact that a nation specializing in capital goods exports is vulnerable to shocks from abroad was eminently predictable so I'm not super-keen on the theory that German prosperity accounts for its political class' attitude toward the situation.

However the German public responds to the slow-down in its economy, these signs suggest that they may not be in a position to act as sole parent to Europe for much longer.

The German economy falters. Photograph: Getty Image

Helen Robb reads PPE at Oxford University where she is deputy editor of ISIS magazine.

Screengrab from Telegraph video
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The Telegraph’s bizarre list of 100 reasons to be happy about Brexit

“Old-fashioned light bulbs”, “crooked cucumbers”, and “new vocabulary”.

As the economy teeters on the verge of oblivion, and the Prime Minister grapples with steering the UK around a black hole of political turmoil, the Telegraph is making the best of a bad situation.

The paper has posted a video labelled “100 reasons to embrace Brexit”. Obviously the precise number is “zero”, but that didn’t stop it filling the blanks with some rather bizarre reasons, floating before the viewer to an inevitable Jerusalem soundtrack:

Cheap tennis balls

At last. Tennis balls are no longer reserved for the gilded eurocrat elite.

Keep paper licences

I can’t trust it unless I can get it wet so it disintegrates, or I can throw it in the bin by mistake, or lose it when I’m clearing out my filing cabinet. It’s only authentic that way.

New hangover cures

What?

Stronger vacuums

An end to the miserable years of desperately trying to hoover up dust by inhaling close to the carpet.

Old-fashioned light bulbs

I like my electricals filled with mercury and coated in lead paint, ideally.

No more EU elections

Because the democratic aspect of the European Union was something we never obsessed over in the run-up to the referendum.

End working time directive

At last, I don’t even have to go to the trouble of opting out of over-working! I will automatically be exploited!

Drop green targets

Most people don’t have time to worry about the future of our planet. Some don’t even know where their next tennis ball will come from.

No more wind farms

Renewable energy sources, infrastructure and investment – what a bore.

Blue passports

I like my personal identification how I like my rinse.

UK passport lane

Oh good, an unadulterated queue of British tourists. Just mind the vomit, beer spillage and flakes of sunburnt skin while you wait.

No fridge red tape

Free the fridge!

Pounds and ounces

Units of measurement are definitely top of voters’ priorities. Way above the economy, health service, and even a smidgen higher than equality of tennis ball access.

Straight bananas

Wait, what kind of bananas do Brexiteers want? Didn’t they want to protect bendy ones? Either way, this is as persistent a myth as the slapstick banana skin trope.

Crooked cucumbers

I don’t understand.

Small kiwi fruits

Fair enough. They were getting a bit above their station, weren’t they.

No EU flags in UK

They are a disgusting colour and design. An eyesore everywhere you look…in the uh zero places that fly them here.

Kent champagne

To celebrate Ukip cleaning up the east coast, right?

No olive oil bans

Finally, we can put our reliable, Mediterranean weather and multiple olive groves to proper use.

No clinical trials red tape

What is there to regulate?

No Turkey EU worries

True, we don’t have to worry. Because there is NO WAY AND NEVER WAS.

No kettle restrictions

Free the kettle! All kitchen appliances’ lives matter!

Less EU X-factor

What is this?

Ditto with BGT

I really don’t get this.

New vocabulary

Mainly racist slurs, right?

Keep our UN seat

Until that in/out UN referendum, of course.

No EU human rights laws

Yeah, got a bit fed up with my human rights tbh.

Herbal remedy boost

At last, a chance to be treated with medicine that doesn’t work.

Others will follow [picture of dominos]

Hooray! The economic collapse of countries surrounding us upon whose trade and labour we rely, one by one!

Better English team

Ah, because we can replace them with more qualified players under an Australian-style points-based system, you mean?

High-powered hairdryers

An end to the miserable years of desperately trying to dry my hair by yawning on it.

She would’ve wanted it [picture of Margaret Thatcher]

Well, I’m convinced.

I'm a mole, innit.