For some months now there have been worries and discussions about Europe’s economy. More and more countries are going into heavy debt crises and now it’s not only Greece that’s in problems, but larger countries like Spain and Italy are also becoming problematic. Debts are soaring and talks about bailouts and ways to reboot the economy are taking place non-stop.
To add to this situation, the German economic figures have been published and show that Germany, that seemed to be the one country holding on quite well, is actually not doing as well as expected.Between April and June growth in the German economy slowed noticeably; it grew by just 0.1% according to the national statistics office. This shows that even though Germany has been driving recovery in the Eurozone, it is actually not as strong as it may seem, and this can cause many problems if further bailouts of European countries are needed. In general, the economic growth in the Eurozone has fallen from 0.8% to 0.2% in the last quarter, which reflects the state that our economy is in.
Angela Merkel and Nicolas Sarkozy have been meeting up regularly in the post weeks to try to find a solution to the Eurozone debt crisis. There have been rumours about discussions regarding the introduction of Eurobonds. These would be bonds backed by the whole euro block rather than individual countries and might be helpful to push the economy up again. However, both the French and German have said that Eurobonds are not an option at the moment and will not be discussed in the crunch talks.
