One of the possible causes of this economic stagnation is the impact on business and consumer confidence that the Ukrainian conflict is having. But trying to justify this anemic growth by this single factor would be misleading.
Countries like France and Italy are not carrying out the reforms that their economies require and their leaders do not seem to be ready of assuming the political cost that its implementation would entail. The German case is different. The Ukrainian conflict does affect many large companies in this country, which has in Russia a very important market. Moreover, as noted yesterday the country’s federal statistical office, Destatis, German economic growth was very strong in the 1Q 2014, powered by a mild winter which allowed many industries to increase their activity, which distorts the comparative with the 2Q 2014.