Will the German revival save the periphery?

Healthy rises in the euro-zone business surveys in February add to evidence that the region as a whole and Germany in particular have made a strong start to the year. But while a bout of robust German growth would appear to be good news for the periphery, it may have drawbacks too if it prompts official interest rates to rise and hence the euro to appreciate. For now, we still think that the peripheral euro-zone economies are set for another tough year.