--Risk of new rise in German inflation due to pay hikes
--ECB in state of heightened alertness, made clear it is ready to act
--Anchoring of inflation expectations must not be put at risk
--EMU inflation to fall slowly below 3% in 2009
--Eurozone growth still solid, but downside risks prevail
--EMU economic cycle to bottom out in 2008
--Germany economy to cool off considerably in spring and summer, cannot
rule out negative GDP growth in 2Q