Eurozone growth painfully above 1%

GDP growth in the Euro zone is 1.2% (annualized rate) since the last quarter of 2017.
The figure of 0.2% (0.75% annualized rate) for the third quarter of 2019 does not change this trend. The carry over for 2019 at the end of the third quarter is 1.1% and growth over the year will be around 1.2% at best.
After the catch-up in 2017, the economy of the Euro zone no longer has the capacity to accelerate. What does one do with the German budget surplus?Can we use it and put in place a more proactive fiscal policy in order to lock in a higher growth trajectory? See here in French.

Euro Area – GDP Profile Real GDP 1Q 2000 – 3Q 2019

Governments against the euro zone

The ECB monetary policy became frankly accommodating only because Draghi had the perception that governments and the Commission would never let go on fiscal policy.
Will Christine Lagarde fall into the same trap as Draghi?

The ZEW remains weak in September

The ZEW measured as the average of its two components remains in very negative territory in September. Its reversal mentioned here and there is very relative. The expectation component is…

ECB accentuates financial repression for an extended period

The ECB has lowered its deposit rate by 10bp to -0.5% and will keep all of its rates at the current level or lower until inflation converges to 2%. In…

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Governments against the euro zone

The ZEW remains weak in September

ECB accentuates financial repression for an extended period

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