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.‚?Ě 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.