-Hans-Werner Sinn, Ifo president
The final data confirmed that the German economy managed to move further away from recession territory, receiving a boost from domestic spending and exports. Germany's GDP expanded 0.7% in the December quarter, the Federal Statistics Office reported. Private consumption rose 0.8%, contributing 0.5 percentage points to economic growth in the fourth quarter, and exports surged 1.3%, adding 0.2 percentage points. A separate report showed Euro zone inflation fell to levels last seen during the global financial crisis due to a precipitous decline in oil prices. On an annual basis, consumer prices in the Euro bloc were 0.6% lower than in the previous year, confirming Eurostat's earlier flash estimate.
Meanwhile, the European Commission admitted that a list of economic reforms submitted by Athens "is sufficiently comprehensive to be a valid starting point". The Greek government submitted its plan on how to overhaul the nation's economy earlier on Tuesday. The new Greek government pledged to take a disciplined approach to budgets, spending and tax collection. The Eurogroup said it agreed to start national procedures, which include parliamentary votes in several countries to ensure the final approval of the deal. The European Central Bank also approved Greece's four-month bailout extension, but expressed concerns over lack of details in Greece's reform plan.
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