Weber Says German Recovery Would Be 'Muted' - Report

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Germany's economy has stopped its "free fall" but any recovery will be "muted" and take a long time, Bundesbank President Axel Weber told the BBC News.

Weber, who is also a member of the European Central Bank General Council, said the eventual phasing out of stimulus measures would see unemployment rise and consumption fall.

"It does not endanger the recovery but it makes it more protracted," he said.

Further, he said imposing tougher regulations "Will bring down the profitability of the banking system and, as all bonuses are defined from profit base, these measures will automatically, quite substantially, reduce the amount of profits to be distributed."

Germany's economy has stopped its "free fall" but any recovery will be "muted" and take a long time, Bundesbank President Axel Weber told the BBC News. (Market News Provided by RTTNews)