The data disclosed yesterday by Eurostat on the evolution of Europe’s GDP in the second quarter of 2015 compared to the previous quarter are disappointing. In the 19 countries of the euro area’s economy grew by only 0.3% , a result strongly influenced by the results of the three largest economies: Germany (+ 0.4% ), France (unchanged) and Italy (+0.2%) . Bucking the only Spain and Greece with respective growth of 1.0% and 0.8%. But shooting in Greece could prove a flash in the pan, as part of it reflects purchases of household appliances, automobiles and other durable goods that the Greeks have decided to buy in recent months so as not to leave their savings in Greek banks. Certainly it will be Spain and Greece to change the situation and revive the Eurozone: The real problem lurks especially in major economies to slow growth of the continent , like France and Italy.
And even Germany could begin to falter as the largest euro zone economy is heavily dependent on exports. Its industries may begin to feel the effects of the devaluation of the yuan with the consequent drop in demand from China, an important customer for German cars and machinery.
What we can say at this point is that the economic stimulus program of the European Central Bank , which has pledged to pump more than one trillion euro (1.1 trillion US dollars) in ‘ economy until September 2016 to boost demand, it failed so far to produce the desired growth in terms of GDP and employment. A devalued euro and more competitive, a greater availability of credit and raw materials at low cost does not seem therefore sufficient to support the revitalization of the Old Continent. As the world economy continues to send signals of a new global recession, Europe appears therefore navigate to view playing only remittance, unable to achieve a strategy of autonomous development that would once and for all be a model for others.
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