EU Recovery Slowed, Draghi Calls for Rate Cuts
EU Recovery Slowed, Draghi Calls for Rate Cuts (Bloomberg)
Mario Draghi, president of the European Union’s (EU) central bank, is calling for an interest-rate cut to help bolster Europe’s sagging recovery. Analysts’ estimates for European Union GDP growth in Q3 show just a 0.1 percent increase. Specifically, German economic growth is expected to slow, French growth has stalled and Italian economy growth is non-existent as the country is still mired in “an unprecedented slump.” Although there are a few bright spots in the EU — Spain comes to mind — the overall picture, according to Draghi, requires the European banking community to take action and to reduce rates. Should that happen, the easy-money train will only gather momentum… and the markets will continue to hum along on artificial stimulus.