Thu Nov 10th, 2011 at 06:23:11 AM EST
In its twice-yearly economic forecasts for the 27 countries of the European Union, the EU executive said it expected economic growth in the 17 countries sharing the euro to slow to 0.5 per cent in 2012 from an expected 1.5 per cent this year.
Growth is to pick up to 1.3 per cent in 2013, the commission forecast. The European Central Bank forecast in September that euro zone growth in 2012 would be between 0.4 and 2.2 per cent after 1.4-1.6 per cent this year.
The commission expects the euro zone economy to contract 0.1 per cent quarter-on-quarter in the last three months of 2011 and sees zero growth quarter-on-quarter in the first three months of 2012. (Irish Times)
The solution? More of the same policies…
A recession looks inevitable now, given that the policy-makers won't change course until its far too late - probably too late now. The question is whether they'll realize their insanity or be thrown out before they manage to plunge us into a depression. I'm not looking forward to 25% unemployment rates in Ireland.