Merkel Advisers See German Growth Slowing in 2012 on Crisis
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European leaders’ decisions last month to combat the debt crisis only bought a “window of time” to fix the euro, Chancellor Angela Merkel’s economic advisers said as they slashed a forecast for 2012 German growth.
Steps to increase the muscle of the European Financial Stability Facility laid out at an Oct. 26 European summit will act as a temporary salve to the crisis, the panel of independent economic advisers wrote in a report published in Berlin today. They forecast growth in Germany next year of 0.9 percent after 3 percent in 2011. The government sees 1 percent growth next year.