Europe – update (8)

The recent posts on da-boss were a mixture of bad news from Europe:

and cautiously positive developments in the field of weather and global climate:

This essay is another update on Europe but, in a surprising twist, will also touch on the issue of climate.

So how does my pessimistic outlook for Europe, expressed in a series of posts on da-boss (search key “Europe”), reconcile with the actual developments? How is France performing under the command of a socialist president, Monsieur Hollande? How is the powerhouse of Germany tracking?

The recession across the 17-nation eurozone has continued into a sixth quarter, figures show. The bloc’s economy shrank by 0.2% between January and March, according to official figures. That left the region’s economy 1% smaller for the period compared with a year ago

1% year-on-year contraction is not much to celebrate. In fact, the economic performance of the Eurozone was so pitiful that it made the Germany’s figures look positive:

Individual data for member countries showed nine were in recession, although Germany recorded weak growth of 0.1% in the period.

As they say “In the Country of the Blind the One-Eyed Man is King”. But how is the Europe’s second largest economy doing?

France has entered its second recession in four years after the economy shrank by 0.2% in the first quarter of the year, official figures show

This is not good. As per another opinion piece published on Channels:

the country had slipped into a shallow recession, dealing a blow to Hollande’s electoral promise of more growth and less unemployment.

So he promised growth through spending but France fell into recession instead. Well – this is what you get from socialists! But maybe other economic indicators in France are positive and the “shallow” recession is just a minor stumble? To find out let us go back to the BBC piece:

Within the zone, France has record unemployment and low business and consumer confidence. (…) The French unemployment rate is running at 10.6% and is forecast to rise further next year. Its budget deficit is also expected to remain well above the EU target of 3% of GDP, with the commission estimating it will be 3.9% this year.

The only election promise Hollande appears to have kept is that the government spending would not reduce, as evidenced by the high budget deficit – all other indicators are heading South.

But where is the climate link promised in the head of the post?

Annual figures from the country’s Statistics Office also show the German economy has shrunk by 1.4% when compared with a year ago. But in a statement it said this was partly due to severe winter weather: “The German economy is only slowly picking up steam. The extreme winter weather played a role in this weak growth.”

So the only positive piece of news I have for you today is that the economic doldrums Europe is in are at least partly caused by the harsh winter, adding strength to the argument that the Global Warming is possibly abating. What has the World come to?

My forthcoming post will focus on the underlying reasons for the economic collapse of Europe. I will also outline what can be done to arrest it – and why it will not be done – so stay tuned!

Europe – update (9)


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