Growth is stumbling in Italy, Germany and elsewhere. Yet the real problem for the euro zone is not sluggish growth but rather the ever growing sovereign debt mountain, says Breakingviews.
▲ Hide Transcript
▶ View Transcript
But we're -- piece on the Euro zone economy from breaking news today yeah I'm it's a relatively -- if -- -- -- -- -- -- -- and it -- so -- -- -- -- is that things -- -- actually -- Bad despite the debt I'm. Want you with. This -- now. I think it's August it's holiday season and I get fed up. To be honest what people. Economists and market sensitive success it's disaster PP is rising. -- in its third recession something. Germany is doing exactly what. The Kipp yes that's cultures -- you're living in the richest countries in the world great social welfare networks and even in Italy where GDP is down almost 10% since its peak. -- consider hitting to some kind of properties and there. On the real problem in the European economy in the real economy -- unemployment that's a serious problem we don't focus on anywhere near enough. That's our -- -- right now -- gonna -- any -- that I understand that that the jets but he similar figures. He led the that the at the unemployment and -- It's hard to get away from the 4050%. Youth unemployment headlines it's hard to get away from seeing. Groups of young kids on the streets when you travel from Spain or -- school it's in the will greens as I have done recently I'm. Helping her on these acts with -- your short journey to be sure how well right right up so I think Kate did reach -- and I think we do focus. But you'll pieces is more about this this debt now. We. As -- as sort of beast journalists we probably focus on -- -- financial markets we don't focus on that what and what we do tend to focus on his growth. We don't realize is. Often is that the underlying problem in Europe is all this -- this government debt the government debt has been increasing even now we hear a lot about austerity. It's increased as a percentage of GDP in all the years of recovery it's not started that process hasn't stopped. And it's bad government that that makes this slew GDP growth truly painful. And really it's a government debt that really makes a government incapable of doing much about unemployment because they can't spend. And the -- GDP is a point down 92% and Tom and you you you you imagine this scenario where it was close it's 10% yeah. Com. -- things. -- what if it would look very different for one thing the governments would be much more able to use stimulus now and -- -- -- I mean every suspended behind me this man money for another thing people financial markets wouldn't be worried but because they be saying -- So it's slowed tourist area -- be focusing on the demographics and focusing. On the need still for -- for structural reform but there would be kind of breathing space to do it. But unfortunately that's not where we are in the world right now will we ever get less visible. Here. I think we might but it may take another crisis and some degree accounts to get their -- back at. And and I think the interesting part has grown and you've touched on -- com. It did despite the austerity it would still it's still creeping up or still jumped seven percentage points GP in in 33 has to mandatory tests that -- yet and we'll go up again this year and it will go up again this year where does -- start to go down. Well hypothetically. When growth goes up and inflation goes up -- inflation is easier and -- at zero it's gonna keep on going pretty much and definitely the case so. We've got to tackle this debt but don't be so pessimistic your message to close that's -- surrogate -- many thanks that I can -- down edwards' piece. Now on the breaking news site for more our agenda setting inside what's the US says 1230. Ice and 1730 PST I'm -- growth was --
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code