The German economy is on a longer-term path of recovery, helped by some gains in domestic demand. Germany may well be able to help lead the euro zone out of a period of fairly stagnant growth.

Germany is catching up with the rest of Europe. Most components of the economy increased: private consumption was quite healthy and there was a pick-up in export activity.

Germany is a split economy. Wage moderation made German companies internationally competitive in the first place. If wages only rise moderately, people may feel optimistic, but they simply don't have that much to spend.

Angela Merkel believes fiercely that Germany needs a freer, more individualistic society, and more market-oriented economy, precisely because she grew up in the very opposite -- in the communist east.

Germany, more than almost any other country, is benefiting from a world economy that's expanding robustly for a third year. We are and remain the winners from globalization.

There is a definite sense of economic spring in the air in Germany.