The Conference Board Economics Watch® - European View
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Authors:
Jean-Claude Manini -
Publication Date:
June 2012 -
Report Number:
EWEV_V2N5
Instability in Euro Area Increases as Losses in Troubled Economies Offset Germany’s Strengths
- The Conference Board Leading Economic Index® (LEI) for the Euro Area fell sharply in April due to low confidence and weak stock market performance
- Troubled economies, and especially Greece and Spain, are facing deepening recessions that are not easy to reverse without some type of stimulus
- The results of the French and Greek elections may change fiscal policy approaches in those countries, which will add to uncertainty
- Concerns about greater financial instability are increasing, and anxiety about the “firepower” of the ECB and the availability of emergency funds may return
- Germany’s role as the locomotive for the European economy offers opportunities to help tackle the European crisis more widely