Further Evidence that the EU is in Denial

By Grant de Graf

Further proof that the crisis in the EU is deteriorating and the the recession is deepening, is found in an article in the Economist's Free Exchange, "Tracking the euro-zone economy in real time." 

The article reports:

"As of the third quarter of 2012, the euro zone economy is officially in recession. GDP in the euro area shrank 0.1% in the three months to September after contracting 0.2% in the second quarter. That marks four consecutive quarters of flat of falling growth. Output fell sharply in peripheral economies like Spain and Italy but also tumbled in core countries like Austria and the Netherlands.

Conditions look like getting worse. An analysis of recent data points by Now-Casting, which publishes "real-time" economic forecasts, points toward deeper contraction in the fourth quarter of 2012. And on the current pace, the euro zone's recession will continue through at least the first three months of 2013."

The unfortunate truth, is that you can wrap the injury in as many bandages as you like, but when you take the x-ray, the illness, a function of an economic blueprint which has clear failings, will still rare its ugly head.

Instead of dousing the wound with morphine, the infection has to be removed, before a long term recovery can begin. In short, the solution is hampered by the lack of politicians who are imbued with the skill to throw aside misplaced ideals. They are ideals which have become the baggage of the architects who helped father their blueprint, the function of which is leading to Europe's collapse. Absent are leaders who need to do what is necessary, to bring together common interests and fight for a cause that will be beneficial for Europe as a whole.

Euro Zone Weekly GDP in Real Time (Provided by now-casting.com)