Europe Still Contracting, France Officially Back in Recession

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Max Rivlin-Nadler

05/15/13 06:41AM

Filed to: Euro Zone

The Euro Zone economy shrank more than expected during the first three months of 2013, revealing a group of nations still deeply mired in recession.

The Euro Zone, which has relied on austerity measures to combat flagging economies, contracted by 0.2 percent during the beginning of this year.

Germany's economy remained stagnant, while France finished its second quarter of economic contraction, meaning it's now back in a recession.

Since the 2008 financial crisis, the Euro Zone has struggled to restart economic growth, and has yet to experience a fun little bubble like the United States.

None of this is good news, as a deflated austerity-obsessed Euro Zone, coupled with the long-term effects of the sequestration in the United States, means an even longer recover (er, if there is one), and a whole lot more of these.

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Sean Brody Max Rivlin-Nadler 05/15/13 07:00AM

It's already a cliche, but austerity is not working.

Taking money out of the economy is a poor way to improve growth.

We'll be okay here though. As long as the Fed is giving out free money.

ziggyunderslashone Sean Brody 05/15/13 07:14AM

All lies, if you take money out of the economy and it grows smaller, the only way to make it bigger is to take more money out of it.

Langosta Sean Brody 05/15/13 07:24AM

Using more debt to prop up a weak economy is like trying to drink yourself sober.

KaiFromDogtown Langosta 05/15/13 07:32AM

No, it's not like that at all, actually.

Russianist Sean Brody 05/15/13 07:56AM

Austerity works best when imposed during good economic times, when fewer people need state assistance and when the economy doesn't need a Keynesian goose from the state.

They'll keep pushing it now, though. It's neoLiberal economic dogma and it'll keep delaying the Eurozone's recovery.

AliHajiSheik Max Rivlin-Nadler 05/15/13 07:02AM

At one point do you acknowledge the facts slapping you in the face and give up on the terrible idea of austerity? As far as I know they don't think their austerity measures are mandated by the baby Jesus so they should be free to own up to their mistake and fix it.

Aubrey Flemming AliHajiSheik 05/15/13 07:16AM

The UK just narrowly avoided a triple dip recession :') It's all going fantastically here!

Langosta AliHajiSheik 05/15/13 07:21AM

Name one austerity measure that has actually been enacted in France.

KaiFromDogtown Langosta 05/15/13 07:31AM

I don't know about France but he may have been talking about Europe in general.

rudi_freude Langosta 05/15/13 07:47AM

j4066 Max Rivlin-Nadler 05/15/13 07:34AM

You know, if 'austerity' means; "spend no more money than you take in in taxes", I'm for that. That's our problem here. Massive debt, most manufacturing outsourced, millions wanting jobs, etc. Printing more money and giving it away is just making things worse.

Langosta j4066 05/15/13 07:40AM

Austerity is a fun scapegoat for those who haven't figured out that government reliance on cheap debt, combined with an overwhelming citizen reliance on government, cannot last.

factscount Max Rivlin-Nadler 05/15/13 07:34AM

Crack me up one year ago France elects a socialist president who enacts socialist reforms and they are back in recession because of austerity. Got it Gawker Facts on the sideset

Cocu factscount 05/15/13 07:43AM

He hasn't enacted many socialist reforms. He's talked of reforms but very little has actually happened.

Plus, we're talking about Europe in general here, not just France.

ARP2 factscount 05/15/13 08:41AM

So, you're angry that a socialist government implemented a conservative economic philosophy? Tell me, is there a scenario in which you wouldn't try to call out the socialist government.