Germany's statistics office today (25 August) confirmed that national GDP grew by 0.3% on a quarterly basis between April and June, signalling a possible beginning of the end of the crisis after four consecutive quarters of recession.
The GDP growth is coupled with positive figures on private consumption, which increased by 0.7% - more than government expenditure - to sustain the country's depressed economy (which grew by 0.4% in the second quarter).
The good news confirms initial estimates released on 13 August, when both Germany and France announced their exit from recession. The rest of Europe, however, continues to lag behind (EurActiv 18/08/09).
The economic recovery carries a strong political value in Germany, which faces national elections on 27 September. Chancellor Merkel is bidding for a second mandate.
However, Merkel's ambitions have received a serious blow with the possible unexpected failure of a government-brokered plan to rescue carmaker Opel and its thousands of German workers.
US giant General Motors, which owns Germany's Opel, is reportedly looking into alternative plans to sell its German branch. This could require the support of other EU countries where GM plants are located, notably the UK, Belgium and Spain.
According to GM sources quoted in the press, the American giant may now prefer a plan tabled by the Brussels-based RHJ holding over an offer made by Canadian parts maker Magna and supported by Angela Merkel.
The plan presented by Magna will preserve the German workforce of Opel factories at the government's expense, but will be less cautious about jobs in other GM plants across Europe.
The possible failure of the Magna plan, which has the financial support of Russia's Sberbank, would call into question the future of thousands of German workers just ahead of the elections.
Employment issues are crucial in German politics and can play a fundamental role in elections. According to the Financial Times, a pact has been made between Merkel's business-friendly government and top managers to avoid announcing job cuts before the poll, to avoid jeopardising the re-election of the current chancellor.
After the last elections in 2005, many German companies cut thousands of jobs despite a pre-electoral debate focused on job security. Such rumours clearly do not favour Merkel's campaign.
