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Germany Economy Stalls

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http://www.bbc.co.uk/news/business-14539502

German economic growth slows sharply

Growth in the German economy slowed sharply between April and June, and was weaker at the start of the year than previously thought, figures show.

The economy grew by just 0.1% in the quarter, according to provisional figures from the national statistics office, while growth in the first three months of the year was 1.3%.

Previous figures had estimated growth of 1.5% in the first quarter.

Germany had been driving the economic recovery in the eurozone.

The weak German growth figures are expected to raise further questions about the strength of the eurozone economy, particularly in light of figures released last week showing that French economic growth came to a standstill between April and June.

Growth figures for the rest of the eurozone will be released this morning.

German Chancellor Angela Merkel is meeting French President Nicolas Sarkozy later to discuss how best to tackle the eurozone debt crisis.

Both leaders, along with the European Central Bank, are putting pressure on so-called peripheral economies to extend austerity measures to try to balance their budgets.

However, there are also fears that spending cuts by governments will undermine overall economic growth.

In an interview with the Financial Times newspaper, the head of the International Monetary Fund, Christine Lagarde, warned governments that they must balance spending cuts with measures to support growth to avoid the risk of a double-dip recession.

Ms Lagarde acknowledged the need for governments to reduce debt levels, but said slamming on the brakes too quickly would hurt the recovery and worsen job prospects

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The recoveryless recovery gaining more momentum....

Thank god the Germans aren't expected to bailout the whole eurozone...

It would appear the German economic model is based on other European states spending more than they earn.

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That is pretty pathetic, although maybe explained by the fact most of their growth comes from exports rather than borrowing.

Whereas most our 'growth' comes from Govt borrowing printing, so is fairly predictable

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Nail in the coffin for the Eurobonds project?

People in Germany are clearly against them, and this latest dreadful piece of news will only strengthen that mood.

Germany's Angela Merkel faces eurobond mutiny

A YouGov poll shows 59pc of Germans oppose all further bail-outs. The majority want to see Greece expelled from the euro and 44pc want Germany to withdraw from EMU.

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The recoveryless recovery gaining more momentum....

Thank god the Germans aren't expected to bailout the whole eurozone...

It would appear the German economic model is based on other European states spending more than they earn.

If they took their surplus, and spent it buying goods and services from 'debtor' nations, the model could work. In the end their piles of money will just lead them to ruin.

Nice triple A rating though.

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It does make Ed Bo11ocks' claims about our recent poor growth being a result of governement cuts look like more bo11ocks.

Who'd have thought that.

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I've had a brilliant idea for them.

Why don't they persuade the UK to do a £2k car scrappage scheme? This would allow them to inflate their car prices by £2k so that UK taxpayers can contribute the extra £2k to German car firms for every new car they sell?

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Nail in the coffin for the Eurobonds project?

People in Germany are clearly against them, and this latest dreadful piece of news will only strengthen that mood.

Germany's Angela Merkel faces eurobond mutiny

can't build empires on the cheap..it costs a lot of lives as well as a lot of money.

the brits and the yanks both have a wealth of experience in that field.(and failure to provide the basics under rule instills mutiny amongst the masses)

Don't say we didn't warn you.

Edited by oracle

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If they took their surplus, and spent it buying goods and services from 'debtor' nations, the model could work. In the end their piles of money will just lead them to ruin.

What surplus? What piles of money?

Germany is still running a deficit (3%) and has an uncomfortably large debt (83%). See here: Germany thread

It says something that everyone seems to be ignoring the facts and assuming Germany could actually bale out the rest of Europe. I'm not sure they could.

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What surplus? What piles of money?

Germany is still running a deficit (3%) and has an uncomfortably large debt (83%). See here: Germany thread

It says something that everyone seems to be ignoring the facts and assuming Germany could actually bale out the rest of Europe. I'm not sure they could.

....time for each Euro country to go their own way...and own currency...it will never work as it is.... :rolleyes:

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That is pretty pathetic, although maybe explained by the fact most of their growth comes from exports rather than borrowing.

Whereas most our 'growth' comes from Govt borrowing, so is fairly predictable

It comes as no big surprise, as most German manufacturers are running at capacity and are not able to ramp up production any further in a short space of time. It will take time for that. There will be a period of flat lining GDP in Germany as they expand capacity, but this issue is not the same as the one faced by the UK or US, where the growth is seen to come from people simply borrowing more more money to spend on imports. It just shows how flawed GDP is as a measure.

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It says something that everyone seems to be ignoring the facts and assuming Germany could actually bale out the rest of Europe. I'm not sure they could.

They hold the key to the printing presses though.

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What surplus? What piles of money?

Germany is still running a deficit (3%) and has an uncomfortably large debt (83%). See here: Germany thread

It says something that everyone seems to be ignoring the facts and assuming Germany could actually bale out the rest of Europe. I'm not sure they could.

Mergey mergey into the big german thread(s) mods?

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....time for each Euro country to go their own way...and own currency...it will never work as it is.... :rolleyes:

I think there is now some considered discussion about a Two Tier Eurozone.

What are the options? Eurobonds are off the table. More bailouts are off the wall . . . Germany can't sustain an Italian rescue. And the ECB can't keep up this level of bond-buying.

It's also unacceptable to ask German taxpayers to hold greater risk on the peripherals while German banks are massively reducing their exposure.

A total retreat from the single currency would cause chaos, but perhaps two currency zones are manageable, with some countries opting out altogether.

Germany, however, probably loses out both ways. It either props till it pops or gets an overvalued currency.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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