Out of the markets’ spotlight, the Italian economy isn’t actually improving. Brussels must balance its ‘whenever in doubt apply a budget-cut’ policy: when GDP deterioration reaches too low a point, that makes urgent structural reforms implausible.
BARCELONA | The job market’s outlook for the coming months is not encouraging, analysts at CaixaBank Research indicate. But imbalances in labour costs across Europe are showing signs of correction. Structural measures could be already working.
Latest data on foreign tourist numbers bring some degree of relief to an economically hurting Spain. Levels of visits have this summer approached 2007 figures. Madrid must apply VAT increases with care on the sector.
In London and Madrid, NGO Save the Children has given a word of alert: the economic crisis is hitting hard those who are more vulnerable. Medicines and food aren’t as available as they should be to them.
Economist Luis Arroyo peeks at Japan’s monetary policy with some sense of vertigo. Deflation has become a real threat for the country’s recovery and should be fought sooner than later.
The French PMI fell by almost four points while Germany’s expanded. That’s bad news for the euro zone, whose core is in for trouble as an isolated German engine cannot pull its neighbours out of recession.
Two months before the US general elections, the Federal Reserve activates a package of expansionary monetary policy that will artificially inject life into the US economy. Carlos Díaz sees this is a vote for Obama.
Japan has lost exports steam. Its current account surplus has fallen from 20.7 trillion yen to 4.4 trillion yen in five years since 2007.
The recessions in the periphery of the euro zone are likely to affect GDP growth expectations for the entire monetary union, at least, during the rest of the year.
FRANKFURT | Public pensions will be cut down by 2 percent, leaving many retired workers with less than €600 a month. That is under the minimum wages deemed sufficient in the country. Shocked? Don’t be. Look behind the picture of a wealthy Germany.