News / Economy

Signs Indicate Europe Economic Crisis May Be Ending

Signs Indicate Europe Economic Crisis May Be Endingi
X
July 31, 2013 6:29 PM
There are signs that Europe’s economy finally may be starting to recover from years of recession and slow growth that have left millions unemployed and hampered the global economy. But experts say it’s too early to plan celebrations. VOA’s Al Pessin reports from London.
Al Pessin
There are signs that Europe’s economy may finally be starting to recover from years of recession and slow growth that have left millions unemployed and hampered the global economy.  But experts say it’s too early to plan celebrations. 

Industrial production in Europe is starting to come back.  That means more jobs and more money that workers and their families can spend.  Over time, that means more economic growth.

The latest statistics make experts like Jonathan Buck, Europe Editor of the financial publication Barron’s, believe the continent’s economy is on the mend. “In the last couple of years, we’ve seen it, effectively, turn a corner of sorts," he noted. "I think that we will see Europe emerging from recession later this year.”

That would be good news for Europe’s protesting workers, like for railway employees in Romania, who have been marching against planned layoffs and wage cuts.

“We came here, first of all, to defend our working places, to have better salaries, better working conditions," said Vasile, a Romanian railway worker.

But at the London consulting firm Capital Economics, Senior European Economist Jennifer McKeown said a real recovery is not likely very soon. "Even the more optimistic surveys are pointing to very modest rates of expansion, and after such a long and deep recession, that’s really not much of a recovery,” she said.

A year ago, some experts warned the euro zone could break up.  But now Latvia is preparing to join the zone, and officials showed off the design for its new coins.

Still, McKeown said the threat to the euro continues, as voter patience with bailouts and austerity runs out. “I think that that all points to a risk of an exit, or at least a lot more tension within the euro zone in the quarters to come,” she said.

“The bailouts have helped countries to stabilize their debt situations and their budgetary problems. And the breakup of the euro seems to have been taken off table,” said Jonathan Buck who works for Financial Times.

While that is not a universal view, it's noteworthy that any experts hold it.  But even Buck’s relatively optimistic viewpoint has limits. “We still may see a few shocks that could test the sustainability of what we’re seeing in Europe at the moment,” he stated.

So, even if Europe is in the early stages of recovery, it will be a long, slow and uncertain one, particularly for the region’s most troubled economies.

You May Like

Turkey's Controversial Reform Bill Giving Investors Jitters

Homeland security reform bill will give police new powers in search, seizure, detention and arrests, while restricting the rights of suspects, their attorneys More

Audio Slideshow In Kenyan Prison, Good Grades Are Path to Freedom

Some inmates who get high marks could see their sentences commuted to non-custodial status More

'Rumble in the Jungle' Turns 40

'The Champ' knocked Foreman out to regain crown he had lost 7 years earlier when US government accused him of draft-dodging and boxing officials revoked his license More

This forum has been closed.
Comment Sorting
Comments
     
by: johnp from: Cyprus
August 03, 2013 2:43 AM
Talk of EZ recovery reminds me of UK Finance Minister Norman Lamont's 'Green shoots of recovery' in Autumn 1991. The UK economy, fixed by an overvalued GBP tracking the Deutschmark (in the ERM - forerunner of the Euro), failed to recover and Britain left the ERM spectacularly in September 1992. Misnamed 'Black Wednesday' it heralded a serious outbreak of common sense. Could have to happen again!

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Victorious Secularists Face Challenge to Form Government in Tunisiai
X
Henry Ridgwell
October 30, 2014 11:39 PM
Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.