Samuel Marshall writes from Frankfurt: The ever smiling and optimistic Mario Draghi, the boss of the European Central Bank (ECB), is at it again.
He predicts that the Eurozone is poised for a recovery. Why does he think this? Both the Eurozone and individual countries have a ‘fundamental position which is much more balanced than that of the US, Japan and the UK’, he says while keeping a perfectly straight face. That man is a born actor, a natural.
Mr Draghi bases his valued judgment on falling private debt, better trade figures and declining labour costs. Debt to Gross Domestic Product is declining in all states, according to the ECB boss. Hard headed economists predict that the Eurozone economies will contract by 0.4 per cent next year. This assessment is fuelled by poor third quarter growth with even German manufacturing down by 3 per cent compared to last year. The reason? Falling export orders. The good news about Greece is that the budget cuts are making their way through parliament. Over 100,000 protesters took to the streets in Athens to drive home the message to the politicians that they oppose the cuts.
