As Germany stumbles, will the rest of Europe fall down with it?
Share Now on:
Linked by a common currency, the countries in the euro zone are roped together like climbers scaling a cliff face. If one or more loses their footing, the rest could come crashing down.
That is the threat contained in a survey out today. Markit’s April Purchasing Managers’ Index (PMI) for the euro zone shows Europe’s biggest economy — that of Germany — is stumbling. Private sector output in Germany has fallen for the first time since last November.
There was slightly better news from France, where the PMI survey indicated that the private sector contracted at a slower rate in April than before. But Germany’s slowdown seems likely to drag the rest of Europe down with it.
In a recent interview with Marketplace Morning Report host Jeremy Hobson, French Finance Minister Pierre Moscovici blamed the euro zone for his country’s economic malaise:
“The problem is the euro zone is the place where we live,” he said. “The difficulty is the euro zone is going to have a second year of recession. It’s very difficult for a country like France to grow when its own environment is weak.”
The PMI survey doesn’t offer much hope of early improvement. Analysts say it indicates that the downturn in the euro zone is intensifying.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
You make our
Support nonprofit news you love with a gift today.