European policymakers focused again last week on the need for growth in the region, with Wednesday’s informal EU summit ending in pledges to speed up structural reforms, strengthen job creation and encourage investment using “Project Bonds”. But all of this looks like too little too late. With May’s PMI survey suggesting that even previously resilient Germany has succumbed to the economic gloom, the euro-zone appears to be heading into a deep recession that will increase the chance of a break-up and put further downward pressure on the euro exchange rate.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services