We don't see another rate rise, but we recognize that the risk is still there, due largely to oil prices -- the oil market remains vulnerable for both supply and demand reasons,

There are a number of countries that are increasingly uneasy about competitive pressures coming from Asia, and the softening of domestic industry.

We believe that the long-awaited shift from soft to hard data is evidence of a recovery in euro zone private consumption has started, and will likely proceed gradually and modestly over the coming months, in line with the expected improvement in household real disposable income.

The main message here is that the recovery is becoming more fragmented. (But) we should not be misled by a few bad numbers. The conditions are in place for some recovery in the first part of this year.

To be fair with Schroeder, he tried and by European standards he did do more than other governments in the past few years. But the problems in Germany are more entrenched now.

It would take a big global shock to change the prospects for at least modest growth in Europe.