Eurostat, the EU statistical service, confirmed once more the excellent health of Eurozone’s economy, at least as far as its international competitiveness is concerned. Low inflation and large surpluses in external trade of goods constitute a solid base for the foreign value of the single money. They also advocate in favour of further relaxation of monetary, fiscal and wages/salaries policies to help the crisis hit member states and the entire Eurozone return to growth. Germany’s insistence for continued austerity is not supported by statistical evidence and has already led to social crisis in the south and in the long run can institutionalise recession. Exports cannot by themselves take Eurozone out of its present misery in the labour market. The danger of a lost decade is not excluded.
Starting from inflation, Eurostat announced yesterday that “Euro area annual inflation was 1.6% in June 2013, up from 1.4% in…
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