Eurozone ‘a problem’ for the world economy

EurActiv ^ | 31/10/2014 — 08:50 | Anne-Claude Martin (translated from French by Samuel White)

[Olog-hai]

The eurozone is struggling to revive itself, and may slip into recession in the next two years, slowing down the global economic recovery, according to the French Economic Observatory (OFCE).

The director of the OFCE’s analysis and forecast department, Xavier Timbeau, presented his economic predictions for 2014-2015 on 29 October, saying “the eurozone is a problem for the global economy”.

The expert believes that the eurozone is acting as a brake on the world economy, and will enter into “a phase of low inflation or even deflation in certain countries,” leading to a eurozone recession within two years. The Observatory’s economists say this change will be slow, but almost inevitable.

Germany, the mainstay of the eurozone, is expected to see limited economic growth of 1.5% in 2015 (with 1.4% forecast for 2014). The prognosis for Italy is also disappointing: it is expected to go into recession. Spain, where unemployment remains at 25%, is the only eurozone economy where economic growth is expected to rise, with 2.1% percent predicted for 2015. …

[GeronL]

Zinmbabwe and Congo are being kept down by those European devils AGAIN??

[Ray76]

The pan-europans have caused many problems.

[henkster]

Well, since the Eurozone insists on producing no energy, has very little productive economic activity, doesn’t work very hard, lavishly supports the parasitic lifestyles of hostile terrorist moslems living there, and spend lots of money they don’t have, yeah. They are are holding everybody back.

[Navy Patriot]

...the eurozone is acting as a brake on the world economy, and will enter into “a phase of low inflation or even deflation in certain countries,” leading to a eurozone recession within two years.

Not to worry, the US taxpayer will rescue will rescue everything deemed socially worthy, and the US military will sacrifice as necessary for those things worthy of Islam.

[Big Red Badger]

Euro Collapse

[familyop]

Each nation should make enough real products on its own soil to carry its own weight.

[Olog-hai]

They would if not for the EU. That was designed to subjugate the “little” states to the “big” ones.

[familyop]

Yes. I’ve seen discussions between political chatterers in the U.K. on gaining most of the control over the EU and reviving the Empire. There was contention between the U.K., France and Germany about that during the ‘90s. Generally, the bosses in the U.K. want to continue the foreign production paradigm, while Germany, France and some of the other Scandinavian nations want to produce more on their own soil. The more globally oriented interests want to keep Italy, Spain, Greece and the like as tourist economies and enrich them that way with funds from the northern nations.

As some of us have bothered to notice, there are some gaping security holes in the global model, likely uglier epidemics and much increased terrorism being only two of many likely problems. We need much more distributed and less centralized production. That means many regulations in state and local governments against building and manufacturing must go away. Same for Europe.