Womp: Eurozone dragging into its sixth straight quarter of recession

posted at 9:21 pm on May 15, 2013 by Erika Johnsen

With no signs of recovery in sight for many of the eurozone’s member countries, the currency bloc’s collective economy has hit a new low with depression-esque conditions percolating across part of the region and Germany’s number-one economy only ‘growing’ by a stagnation-level 0.1 percent. Ouch, via Reuters:

Falling output across the bloc meant the 17-nation economy is in its longest recession since records began in 1995.

It shrank 0.2 percent in the January to March period, the EU’s statistics office Eurostat said on Wednesday, worse than the 0.1 percent contraction forecast by a Reuters poll.

“The misery continues,” said Carsten Brzeski, a senior economist at ING in Brussels. “Almost all core countries bar Germany are in recession and so far nothing has helped in stopping this downward spiral.

As well as France, the economy shrank for the quarter in Finland, Cyprus, Italy, The Netherlands, Portugal and Greece. Data last month showed Spain’s economy contracted for a seventh consecutive quarter.

Germany, which generates almost a third of the euro zone’s economy, grew by a weaker than expected 0.1 percent, skirting the recession that France succumbed to, but highlighting the devastating impact of the euro zone’s debt and banking crisis that has driven unemployment to a record 19 million people. …

French growth has faltered as unemployment undermines the confidence of both consumers and businesses, which are struggling to cope with government belt-tightening while Spain remains deep in the mire.

I’d wager that Socialist French President Francois Hollande is in a world of hurt right now; the already deeply unpopular leader has made promise after promise about how he’ll fix the unemployment crisis and put France’s economy back on the straight and narrow, and while it will of course be all the fault of the unfair restrictions unfairly placed upon him by the unfair EU, he has a serious crisis of confidence on his hands at home:

In only his second press conference since assuming power, Mr Hollande on Thursday faces the Herculean task of convincing France he has the antidote to the dark mood sweeping France.

Mr Hollande will insist – as he did yesterday – that the “worst is over” for the economy and that his reform programme is on track. …

Gross domestic product contracted 0.2 per cent, after shrinking the same amount in the last quarter of 2012. Mr Hollande also admitted that growth would be likely be “nil” in 2013 while unemployment is at an all-time high of 3.2 million.

On Wednesday during talks in Brussels, Mr Hollande was grudgingly given another two years to bring government spending under control but only on the condition he carries out radical economic reforms.

According to polling data just released from Pew, support for the European Union and the common currency is quickly souring across much of Europe; Germans are still feeling generally okay about it, but elsewhere and most especially in France, that support is falling away as more and more people are getting fed up with the failed project.

Support for European economic integration – the 1957 raison d’etre for creating the European Economic Community, the European Union’s predecessor – is down over last year in five of the eight European Union countries surveyed by the Pew Research Center in 2013. Positive views of the European Union are at or near their low point in most EU nations, even among the young, the hope for the EU’s future. The favorability of the EU has fallen from a median of 60% in 2012 to 45% in 2013. And only in Germany does at least half the public back giving more power to Brussels to deal with the current economic crisis. …

 

The prolonged economic crisis has created centrifugal forces that are pulling European public opinion apart, separating the French from the Germans and the Germans from everyone else. The southern nations of Spain, Italy and Greece are becoming ever more estranged as evidenced by their frustration with Brussels, Berlin and the perceived unfairness of the economic system.


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Comments

I wonder if Obama is envious?

pat on May 15, 2013 at 9:25 PM

Obama can offer some tips on how to jump start a country..

No..
Seriously..

Electrongod on May 15, 2013 at 9:25 PM

Maybe it is time to look at the Socialist Ideology behind their economic policies…?

Seven Percent Solution on May 15, 2013 at 9:26 PM

Guess I’d better get rid of those euros that I have left from my trip to Ireland in March, eh?

Bob's Kid on May 15, 2013 at 9:26 PM

BREAKING:

Other People’s money runs out; EU in decline.

BobMbx on May 15, 2013 at 9:27 PM

I wonder if Obama is envious?

pat on May 15, 2013 at 9:25 P

I wonder if Obama knows.

Well, it is on the news so there’s a chance.

BobMbx on May 15, 2013 at 9:28 PM

“The misery continues,” said Carsten Brzeski, a senior economist at ING in Brussels. “Almost all core countries bar Germany are in recession and so far nothing has helped in stopping this downward spiral.

Huh, maybe someone should’ve warned them or something.

squint on May 15, 2013 at 9:33 PM

As Maggie Thatcher was wont to say, “Sooner or later they run out of other peoples money.”

Screw the EU…

Scrumpy on May 15, 2013 at 9:36 PM

I wonder if Obama is envious?

pat on May 15, 2013 at 9:25 P

I wonder if Obama knows.

Well, it is on the news so there’s a chance.

BobMbx on May 15, 2013 at 9:28 PM

…JugEars:like everything else…”I first learned about this…from news reports…like everybody else!”

KOOLAID2 on May 15, 2013 at 9:41 PM

Once upon a time, America had an economy strong enough to lead the world out of recessions.

Then, Progressives came along and America changed.

MTF on May 15, 2013 at 9:46 PM

Hmmmm…..seems all that “free stuff” in the EU wasn’t “free” after all.

Is Barry taking notes?

GarandFan on May 15, 2013 at 9:48 PM

You know it is time for personal intervention when you are reading about economics and politics on HA while the tornado sirens are blaring outside.

Limerick on May 15, 2013 at 9:49 PM

This isn’t good for North America, either.

rickv404 on May 15, 2013 at 9:50 PM

They need a real federal system like we have in the US. That way, the left can screw around until Mercedes looks like GM and Germany goes the way of Michigan.

Then they blame the Swiss or British investors and bankers.

They don’t have our racism but with a little imagination they can whip up a decent copy in reliving wars or soccer games which didn’t work out like they wanted. Ok, it is lame but their version of a Harley sounds like a sewing machine, anyway.

IlikedAUH2O on May 15, 2013 at 9:59 PM

The only way for the Euroweenies to get out of these awful economic doldrums is to raise taxes.

SparkPlug on May 15, 2013 at 9:59 PM

Downward spiral? Wait till they hit Barock bottom.

SparkPlug on May 15, 2013 at 10:00 PM

Womp: Eurozone dragging into its sixth straight quarter of recession

Green shoots!!

ThePrimordialOrderedPair on May 15, 2013 at 10:02 PM

According to polling data just released from Pew, support for the European Union and the common currency is quickly souring across much of Europe;

I find this bit of “news” interesting because there was never much popular support for the EU. They had to stop holding referenda for their retarded Constitution because it went down in flames the few times it was tried (so they then snuck it in by calling it the Lisbon TREATY, instead … and as a TREATY it didn’t need a plebiscite … yup).

Maybe support has dipped even further but the EU was never able to withstand any popular vote. Heck, in Britain they made a sport of intentionally not letting anyone vote on anything about it.

All that said, Eurotrash is just doing what Eurotrash does … killing themselves and destroying everything within arm’s length of them. They’ve been pulling this destructive suicidal junk for almost a century, now.

Let us not forget that Barky was always a bigger hit in Europe than he ever was, here. Heck, the biggest political rally (possibly in history) was Barky’s illegal, un-Constitutional, un-American and offensive Berlin rally for Germans. Barky never should have been allowed to return to the US after that. The Eurotrash loved him … they should have been forced to keep the retard.

ThePrimordialOrderedPair on May 15, 2013 at 10:07 PM

Can I buy Spain yet on Ebay?

Capitalist Hog on May 15, 2013 at 10:11 PM

How long before they change the EU to eewwww?

socalcon on May 15, 2013 at 11:00 PM

Just as a technical reminder – European GDP estimates are not annualized, so if one wants to compare it to what the BEA puts out there, multiply by 4 to get a close-enough-for-government-work approximation. That makes the overall rate -0.8%, and Germany’s rate +0.4%, on an annualized basis.

As for the continued German support for the pEU, they must be thinking that Brussels is once again in Greater Germany.

Steve Eggleston on May 15, 2013 at 11:26 PM

Can I buy Spain yet on Ebay?

Capitalist Hog on May 15, 2013 at 10:11 PM

S&H is going to kill you.

trigon on May 15, 2013 at 11:47 PM

As Maggie Thatcher was wont to say, “Sooner or later they run out of other peoples money.”

Screw the EU…

Scrumpy on May 15, 2013 at 9:36 PM

Totally agreed!!

jimver on May 16, 2013 at 2:10 AM

This isn’t good for North America, either.

rickv404 on May 15, 2013 at 9:50 PM

If we had accurate data, instead of politically massaged propaganda, we would see Europe is not alone.

dogsoldier on May 16, 2013 at 8:02 AM

Can I buy Spain yet on Ebay?

Capitalist Hog on May 15, 2013 at 10:11 PM

Not yet. But I wouldn’t say it’s impossible that we’ll see such a thing in our lifetimes.

We’re getting a front-row seat at the final stages of what happens to nations that subscribe to some moronic liberal sing-around-the-campfire version of international unity, with a generous dose of economic socialism used in the recipe.

MelonCollie on May 16, 2013 at 8:14 AM