By the time they wake up (it will be the same story in the UK) the moment will be lost. The strict austerity in Germany isn't necessary today despite what the right believes. Spain, Greece and Portugal may be a different story, but in this case, the belt tightening is going to be costly in the long term.
"The German economy is nowhere near pre-crisis levels yet," Roubini told Capital on Monday. "The current growth rate may look good on paper, but that is mainly a statistical effect."
Germany can currently borrow money cheaper than ever and German Chancellor Angela Merkel should take advantage of this and only start consolidating once the rest of Europe is in better shape, Roubini said.
The switch to “savings mode” at that point would still slow growth, but at least it would prevent “an emergency stop without a safety belt,” he said.
