The recession in the German economy is not good news for Spain. The first vice president of the government, Nadia Calviño, acknowledged that prospects have darkened for Germany and that the European economy is highly integrated with Germany as one of its main markets. She spoke in Washington during the autumn meeting of the European Union and the International Monetary Fund. Germany has released its official forecasts showing a contraction of about 0.4 percent in 2023 and inflation around 7 percent. Calviño echoed a famous proverb, Europe gets chilly when Germany sneezes, underscoring Germany as the European locomotive whose performance affects the rest of the euro area. The metaphor is apt for the present moment, according to her.
