When it was just the peripheral PIIGS nations slowing down, we haughtily laughed and lit up another cigarette whilst motioning to the garcon to bring more butter tarts.
But now growth is stalling at the core of Europe and no one knows what can be done about it…
From the New York Times:
Gross domestic product in the 17-nation euro area rose 0.2 percent in the second quarter of 2011 compared with the previous quarter, according to Eurostat, the E.U. statistics agency. Euro area growth was down from 0.8 percent in the first quarter.
G.D.P. growth in Germany, which has been the region’s economic locomotive, fell to 0.1 percent compared with the previous quarter, when the economy expanded 1.3 percent, the German Federal Statistical Office said. Analysts had expected growth of 0.5 percent.
There is a Merkel-Sarkozy joint press conference happening shortly. Curb your enthusiasm.