Euro zone avoids recession, but divisions remain
In Europe these days, any good news is really good news. And two straight quarters in positive growth means the Euro zone escaped falling back (technically) into recession, reports the Wall Street Journal.
The paper notes that problems remain in the “widening gap between the euro zone’s largest and strongest member and southern European economies,” which has economic and political impact.
The ongoing crisis is affecting markets in the US and in Asia as well. The cloud of impending doom also appears to be hanging heavily over Europe as analysts begin to contemplate what happens if Greece leaves the Euro zone.
“The risk of a hard default, regardless of whether Greece leaves the euro, is incalculable,” analyst Carl Weinberg asserted. “We expect EU-hardliners to back down rather than pull the plug on Greece’s lifeline, if only because the costs are both lower and knowable if Greece is kept alive.”