Eurozone Recovery: How Slow Is Too Slow?
While economic health is certainly improving in the eurozone, progress continues to be slow. According to Reuters, the projected 1 percent improvement expected this year won’t be enough to drive down unemployment, a major economic factor for countries struggling to improve their inflation situation.
“We do have a recovery, of that we can be confident. But the task is to nurture it, because it’s not strong enough to make a significant impact on unemployment, which is the primary source of disinflation,” Julian Callow, the chief international economist at Barclays, told The Wall Street Journal.
Early in December, the European Central Bank said it would step in to help if inflation continued to remain low in the eurozone. Still, it may be more hesitant to meddle than has been indicated, or so economists told the Journal, saying that printing money or changing interest rates could have the propensity to displease a more stable Germany, a country that historically hasn’t been a fan of bank intervention.