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"Unexpected" recession

by DoDo Fri Feb 22nd, 2013 at 03:48:39 PM EST

[Hoisted from the weekend's Newsroom]

Today the European Commission revised its forecast, now predicting another year of recession for the austerity-stricken Eurozone. Olli Rehn again had the gall to speak about an "unexpected shortfall of growth". (Austerity-caused) recession naturally impacts deficit reduction targets. But what's interesting is that the Fiscal Compact won't be taken seriously:

Spain, Portugal and France likely to be spared further austerity despite poor EC forecasts - Business News - Business - The Independent

Commission Vice-President Olli Rehn signalled today that the organisation would refrain from using its powers under the Compact to levy fines on excessive borrowers and would instead give them more time to meet their fiscal commitments. “In the case of Spain, it seems that the structural fiscal effort has been undertaken and that there has been also an unexpected shortfall of growth” he said. Ministers from France and Portugal also said today that they would ask Brussels to push back the target by a year, as they blamed pinned the blame for their respective borrowing overshoots on the weak eurozone economy. The Commission now expects the 17 nation bloc to contract by 0.3 per cent over the course of 2013. Last autumn it expected 0.1 per cent growth.


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As for Greece:

Spain, Portugal and France likely to be spared further austerity despite poor EC forecasts - Business News - Business - The Independent

The Commission's forecasts are bleakest for Greece, whose economy is seen shrinking for a sixth successive year in 2013. It is expected to contract by 4.4 per cent, before finally managing a 0.6 per cent expansion in 2014. Unemployment is expected to peak this year at 27 per cent.

...and if you believe that 0.6% in 2014, I have some fine Wall Street derivatives to sell you.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Fri Feb 22nd, 2013 at 03:58:14 PM EST
As for the UK:

BBC News - Eurozone downturn and deficits to persist, Commission says

Meanwhile, the Commission told the British government that it would need to take additional austerity measures.

The Commission said the UK was also not on target with its deficit reduction, with government overspending expecting to increase to 7.4% of GDP this year, the worst in the European Union, from 6.3% in 2012.

The UK economy was predicted grow 1% in 2013, compared with the 1.1% previously forecast.



*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Fri Feb 22nd, 2013 at 04:03:36 PM EST
[ Parent ]
Actually I'd be very suspicious of that -4.4% as well

The road of excess leads to the palace of wisdom - William Blake
by talos (mihalis at gmail dot com) on Sat Feb 23rd, 2013 at 06:18:16 AM EST
[ Parent ]
UK's credit rating downgraded from AAA to AA1 by Moody's - Guardian

The Friday dump by Moodys reveals:

George Osborne has insisted Britain will not "run away" from its problems after Moody's downgraded the country's AAA credit rating.

The chancellor said the coalition was determined to stick by its plan for economic recovery after the rating was lowered by a notch to AA1.

The agency warned that "subdued" growth prospects and a "high and rising debt burden" were weighing on the economy.

by epochepoque on Fri Feb 22nd, 2013 at 05:39:23 PM EST
What you folks need is a revolution ala Syria. Till then the frog continues to cook unto death.

The good news ... it's only a life sentence. You eventually leave this planet of idiots.
by THE Twank (yatta blah blah @ blah.com) on Fri Feb 22nd, 2013 at 08:37:24 PM EST
[ Parent ]
I am certain all the Europeans will be gratified by your kind thoughts. Perhaps Tunisia would have been a better example - certainly less bloody. Hopefully Italy will show a better way. We may have an indication by Monday.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Feb 23rd, 2013 at 07:55:39 PM EST
[ Parent ]
Kind thoughts, ugly thoughts ... who cares. The people in control are having a great time while they screw over everybody else and they won't leave voluntarily. So what are their options? Peaceful crap is just that ... crap. Look at Egypt.

The good news ... it's only a life sentence. You eventually leave this planet of idiots.
by THE Twank (yatta blah blah @ blah.com) on Sat Feb 23rd, 2013 at 09:58:49 PM EST
[ Parent ]


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