Germany's Bundesbank released its monthly report on Monday. The central bank expects a strong growth of German economy in the first quarter of year.

"There are also signs of a continued vigorous upward economic movement in the second quarter," Bundesbank added.

The central bank noted that private consumption and the savings rate climbed in the fourth quarter of 2014.

"The currency union ought to be able to withstand the extreme case of the insolvency of a member state," Bundesbank also said.