Eurostat data of August 14th showed that the German economy contracted by 0.2% in the second quarter of the year, while the French economy posted zero growth over the same period. Both countries fell short of forecasts. Dutch growth was in line with forecasts at 0.5%, while Portuguese growth came in slightly above expectations at 0.6%.
French Finance Minister Michel Sapin writes in Le Monde, “France’s [GDP] growth should be around 0.5% [this year], and nothing at this stage allows us to predict growth much higher than 1% for 2015.” Consequently, the French public deficit “will be higher than 4% of GDP in 2014” – missing the deficit target agreed with the European Commission. Sapin also called for EU action to raise growth and a monetary policy adapted to the situation of fragile economic growth.
Eurostat press release
Le Monde
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