Tuesday, May 11, 2010

European Economy: Weak growth for 2010-2011, according to an IMF forescast

While euphoria fades over Euro rescue, IMF sees a timid, small recovery of European markets.

International Monetary Fund sees a growth on European economy that will pick up in 2010, 2011 period, thanks to the €750 bn ($975 bn) bailout suggested yesterday, and an increase of EU exports.

In addition to calling for a stronger fiscal framework, the IMF report raised questions about the long-term sustainability of fiscal stimulus programs.

The bad news came today, after the unexpected worldwide increase of stock markets ( Yesterday Indexes ), Euro set foot on the ground and fell down to $1.267, down from $1.28 in Monday.

On June 4, German parliament will debate about Eurozone rescue. Sticky situation, as the country is divided."We cannot have a monetary union without an economic union", said EU Commission President Jose Manuel Barroso, who suggested a "More coordinated Europe"

FT's Lex Columnist, Vicent Boland, speaks on Bloomberg about €750/ $962 bn European help aid:

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