The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 
The Conference Board Economics Watch® - European View

Outlook for Euro Area Worsens Due to Rising Financial Instability

  • The Conference Board Leading Economic Index® (LEI) for the Euro Area fell in May, led by declines in confidence indicators and stock prices
  • As slower growth in the rest of the world (U.S., China) is not offsetting Euro Area losses, recession will extend into second half of 2012
  • Bailout of Bankia set off deeper banking crisis in Spain, which led to a request for a 100 billion euro bailout for a broader group of troubled banks
  • Uncertainty about Greece’s willingness to comply with the terms of its bailout agreement adds to financial risk, even after pro-bailout party emerged victorious in election
  • Gradual movement toward more joint responsibility, such as a banking union, is more likely than a radical policy breakthrough or collapse; EU leaders may consider these issues at today’s and tomorrow’s summit
  • Fiscal programs are likely to represent a drag on the Euro Area economy in 2012 and 2013, especially in the weakest countries

 

 

 

 

Pricing
Economics Watch Reports (9 pgs)
Complimentary: Sign in or create an account to download.