Austerity isn't working as France teeters on brink
HERE'S something bold. Not only is the European economy not going to recover but a secondary depression is now on the cards. The putative European recovery has evaporated – as anyone with a grasp of Leaving Cert economics would have forecast a few years ago given the policy mix adopted.
Not only is austerity not working on the periphery in places like Ireland, Spain and Greece but the core of Europe is weakening rapidly and the most fragile country on the continent is now France. Economic indicators – ranging from unemployment to industrial production and corporate earnings – have deteriorated so rapidly in France in the past few months that it is almost certain that France will enter a recession in the summer months.
Meanwhile, today in Germany, something bizarre is happening.