Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

France calls on ECB to fix 'broken' Europe, as German & French GDP lag

France calls on ECB to fix 'broken' Europe, as German & French GDP lag

The German and French economies both disappointed in the second quarter, casting doubts over the eurozone’s fragile economic recovery.

The German economy shrank 0.2% during the second quarter, while the French economy failed to record any growth over the same period. It is the second consecutive quarter the French economy has not recorded growth. The implications for the currency bloc are profound and suggest further signs that it is moving towards deflation.

The French stagnation means the government will miss its budget deficit this year and will halve its gross domestic product forecast for 2014. Fresh from the figures the country called on the European Central Bank to do more to tackle the risk of deflation and bring the euro to a more competitive level.

Sky news reported that French finance minister Michel Sapin told the daily Le Monde newspaper: 'Growth has broken down, in Europe and in France. With zero growth in the second quarter, thereby extending the stagnation we saw in the first, our country is slowing down and will not achieve the 1% growth observers were predicting three months ago.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter