To the extent that economic misery breeds unhappiness with Euro project, I would think it would be in everyone's long-term best interest to have Germany continue to botch along, at least until it rejects the EU constitution and does its bit to kill off the whole superstate.
I suspect there will have to be somewhat unseasonable weather in Hades, before the Germans are willing to lose the welfare state fantasyland in which they live.
Our primary concern in the UK must be to avoid being dragged into the same anaesthetised condition, which means getting out of the EU as fast as we possibly can.
RC Dean, of course the crappy state of the German economy (ditto Italy/France) bolsters the anti-EU case, but one should not tie the argument solely to the misfortunes of other countries. If Germany did embrace the free market path, I cannot see how the likes of us would object to that.
And as always for German political matters, don't forget to stop in at David's place.(Link)