Memo to Merkel: Post-election Germany and Europe. Bruegel Policy Brief 2013/05, 24 September 2013

Recent economic data points to the seeds of an economic recovery in the European Union. However, significant risks remain and bold policies are still needed. There are three central risks. Competitiveness adjustment is incomplete, casting doubt on the sustainability of public debt. Banking remains unstable and fragmented along national lines, resulting in unfavorable financial conditions, which further erode growth, job creation and competitiveness. Rising unemployment, especially among the young, is inequitable, unjust and politically risky. Germany has a central role to play in addressing these risks. The new German government should work on three priorities: Domestic economic policy should be more supportive of growth and adjustment, with higher public investment, a greater role for high-value added services, and more supportive immigration policy. Germany should support a meaningful banking union with a centralised resolution mechanism requiring a transfer of sovereignty to Europe for all countries including Germany. The establishment of a private investment initiative combined with a European Youth Education Fund and labour market reforms should be promoted. Building on these priorities, a significant deepening of the euro area is needed, with a genuine transfer of sovereignty, stronger institutions and democratically legitimate decision-making structures in areas of common policy.

Miocene palaeoclimate reconstructions from the North Alpine Foreland Basin in Germany

Early- and Middle-Miocene sediments of the North Alpine Foreland Basin (NAFB) in Southern Germany contain one of the world richest regional records of silicified wood. Here we analyze over 1,000 identifiable samples, belonging to 80 wood anatomical taxa from 61 stratigraphically well-dated localities using principally the Coexistence Approach. The samples investigated originate from fluvial sediments representing periods of intensified surface runoff in the NAFB and therefore represent and provide information pertaining to the wet end-member of the fluctuating climate system. The dry end of the climate system is represented in the profiles either by hiatuses or palaeosoils. The dataset is split into four xylofloras: (I) the Ortenburg xyloflora (Late Ottnangian; ~17.5 to 17.3 Ma) originating from a paratropical evergreen Carapoxylon (Xylocarpus) forest; (II) the Southern Franconian Alb xyloflora (Late Karpatian; 17.0 to ~16.3 Ma) originating from a subtropical semideciduous limestone forest; (III) the upper Older Series xyloflora (Early Badenian; ~16.3 to ~15.3 Ma) originating from a subtropical oak-laurel forest; and (IV) the upper Middle Series xyloflora (Middle Badenian; 14.3 to ~13.8 Ma) originating from a subtropical dry deciduous forest.