Two aspects are pivotal for the economic outlook. On the one hand the government savings packages, on the other the depreciation of the euro. According to Allianz calculations, the savings packages will reduce eurozone gross domestic product by 0.3 percent to 0.7 percent in 2010 and by 0.5 percent to 1.2 percent in 2011 via a reduction in aggregate demand. On the other side, a 10 percent depreciation of the euro will increase gross domestic product by an estimated 0.6 percent to 0.7 percent after four quarters and by 0.8 percent to 0.9 percent after two to three years. Heise: “All told, the negative economic impact of the savings packages and the positive effects of the decline in the euro will more or less cancel each other out. Public-sector consolidation is therefore unlikely to put an end to the recovery.” Ultimately, successful public-sector consolidation will strengthen confidence in the economic outlook and thus buoy domestic demand in the medium term.