This is an important and MUST READ, article in the FT. Check it out!
The article takes a balanced view of the Q2 Eurozone growth figures and the hype coming out of Berlin and Brussels.
Many people will be angered by Olli Rehn‘s opportunistic remarks. Olli Rehn has been the architect of excessive austerity in Europe, causing severe economic and social pain to millions of people. Most serious analysts will be looking for hard evidence of fiscal discipline and reform.
For sure, the Eurozone and the UK had a better Q2 growth performance than Q1 but it’s still a very long way from a sustainable trend. Unless, there is serious fiscal stimulation to increase demand in Europe, I would expect the growth trend to be very lack lustre, with the misery of austerity continuing for many millions. There are also fundamental concerns about the effectiveness of banks in Europe.
In short, this is good news for the top 1% but much more debatable for the “great unwashed”, the prevailing 99%.
- Eurozone exits longest recession as Germany, France outpace U.S. (business.financialpost.com)
- Dr Alf’s Two Cents: Olli Rehn EU Economics Commissioner visits the Fairies (dralfoldman.com)
- Eurozone hauled out of 18-month recession by Germany and France (theguardian.com)
- Eurozone exits longest ever recession (telegraph.co.uk)
- Eurozone escapes recession, debt crisis clouds outlook (thenewstribe.com)
- The Big Squeeze – Editorial – FT.com (dralfoldman.com)
- Euro zone performance suggests recovery in sight: EU’s Rehn (news.yahoo.com)
- Eurozone jobless rate hits record high as inflation falls – FT.com (dralfoldman.com)