Thursday

30th Mar 2017

Eurozone slides deeper into recession, Germany grows

  • By far the worst is Greece, whose economy shrunk by 6.2 percent compared to last year (Photo: Travel Aficionado)

Eurozone economies continue to go separate ways, with overall recession of 0.2 percent, while Germany's economy is still growing by 0.3 percent, according to the latest Eurostat data comparing the three months from April to June to the previous quarter.

The so-called flash estimate, which is expected to be confirmed by final data in September, puts the eurozone and the EU as a whole on a declining trend, both having their gross domestic product shrinking by 0.2 percent compared to the first three months of the year.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

When compared to the same period last year, the 17 euro-states fare even worse, with their GDP shrinking by 0.4 percent, while the 27 EU states remain at the same 0.2 percent recession.

Germany's economy grew by 0.3 percent of GDP, while France stagnates. Portugal is shrinking by 1.2 percent, Italy and Spain by 0.7 and 0.4 percent, respectively.

"The flash estimate is in line with markets expectations and our economic forecast," EU commission spokesman Ryan Heath said on Tuesday (14 August) during a press conference.

However he highlighted that the data for the UK is worse than expected, with its GDP shrinking by 0.7 percent compared to the previous three months and by 0.8 percent compared to the same period last year.

By far worse is Greece, whose economy shrunk by 6.2 percent compared to last year.

Heath said this was mainly due to the two rounds of elections and the delays that occurred in implementing the terms of the second bailout.

On Tuesday, the Greek government managed to sell €4 billion worth of three-months bills to its own banks, which in turn had the money from the first tranche of the €130 billion bailout agreed in March.

This will allow Athens to repay a batch of bonds maturing on 20 August and keep the European Central Bank (ECB) lifeline for its banks open.

A mere reshuffling of debt to buy Greece the time needed for the troika of international lenders to write up a key report in September, with the second tranche of €31.5bn not expected until October.

Eurozone crisis worsens as Germany warned on top rating

The euro-crisis is accelerating as Spanish borrowing costs continue rising and Germany, the Netherlands and Luxembourg on Monday were warned they may lose their triple A rating due to "rising uncertainty."

Eurozone still mired in recession

The eurozone economy shrank in the final three months of 2012, dealing a blow to those hoping that the bloc's recession had run its course.

Stolen Russian billions ended up in EU states

Illicit money flowing out of Russia ended up in almost every single EU state, an investigation has found, posing questions on the integrity of Europe’s banking systems.

News in Brief

  1. UK delivered its Article 50 letter to the EU
  2. Support for Germany's anti-EU party fading
  3. Turkish intelligence not welcome in Germany
  4. US senate approves Montenegro’s Nato bid
  5. Scottish MPs give go ahead to seek referendum
  6. Uber pulls out of Denmark over new taxi-regulation
  7. EU court validates sanctions on Russia's Rosneft
  8. Luxembourg to team up with Ireland in Apple tax appeal

Stakeholders' Highlights

  1. The Idealist QuarterlyCan Progressive Stories Survive Our Post-Truth Era? After-Work Discussion on 6 April
  2. ACCAG20 Citizens Want 'Big Picture' Tax Policymaking, According to Global Survey
  3. Belgrade Security ForumCall for Papers: European Union as a Global Crisis Manager - Deadline 30 April
  4. European Gaming & Betting Association60 Years Rome Treaty – 60 Years Building an Internal Market
  5. Malta EU 2017New EU Rules to Prevent Terrorism and Give More Rights to Victims Approved
  6. European Jewish Congress"Extremists Still Have Ability and Motivation to Murder in Europe" Says EJC President
  7. European Gaming & Betting AssociationAudiovisual Media Services Directive to Exclude Minors from Gambling Ads
  8. ILGA-EuropeTime for a Reality Check on International Day for the Elimination of Racial Discrimination
  9. UNICEFHuman Cost to Refugee and Migrant Children Mounts Up One Year After EU-Turkey Deal
  10. Malta EU 2017Council Adopts New Rules to Improve Safety of Medical Devices
  11. Nordic Council of MinistersNordic Energy Research: How to Reach 100 Percent Renewable Energy
  12. Party of European SocialistsWe Must Renew Europe for All Europeans