Although purchasing managers surveys for July, released earlier today, suggest that the economicrecovery in the euro-zone as a whole is regaining momentum, they also still show a large gap betweenthe performances of Germany and France. This could spell trouble for French government bonds andfor the debt of governments in the periphery of Europe, especially if differing priorities in Paris andBerlin hold back the adoption of policies such as more moves towards fiscal and banking union. What’smore, current euro strength is sowing the seeds of renewed weakness in the future.
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