The Eurozone gloomy Economic outlook

Consumer Price Inflation (CPI) in the Eurozone fell to a record low of 0.3%, the lowest level in almost 5 years. French Prime Minister Manuel Valls, on his side argues that the euro is way too much strong for the French economy. This statement has been supported by many other governments in the Eurozone.   While many are calling for a Quantitative Easing (QE) programme, the pressure on Mario Draghi to take action is getting more and more pungent. Italy is already in the labyrinth of recession and has called for an urgent meeting to discuss about the labour market and economic growth; an appeal to which many Eurozone leaders responded positively and is expected to take place in early October.   It is to be noted that no expansion has been witnessed in the past three months across the Eurozone and the influx of economic data has been quite disappointing.   The European Central Bank (ECB) is scheduled to meet this week on Thursday to discuss the factors affecting recovery and how to get the Eurozone out of the danger zone. It is of no wonder that the geopolitical tensions between Ukraine and Russia have caused much havoc for the Eurozone after it decided to take Ukraine’s side at the risk of angering its Russian trade partner.   Mario Draghi, President of the ECB has appealed for a common input from all economies and to find a correlation among each other. A common input according to Draghi will be decisive to boost the stagnating euro. Nevertheless, he is appearing less credible due to the falling French and Italian economies. And because Draghi cannot solely rely on their input, the ECB will have to decipher strategies from its side to give a boost. Some analysts are even suggesting that interest cuts might also be predicted for the Thursday’s meeting. Source:  City A.M, Business Insider
Priscilla Camryn By: Priscilla Camryn
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