The euro’s sharp fall to 1.0705 right now is all concerning the US greenback facet of the equation however the home causes for promoting Europe proceed to mount. An enormous one is the erosion of the German industrial financial system. The mixture of excessive vitality costs and the rise of Chinese language autos is an enormous problem and the federal government is loath to assist.
Reuters sources right now report that the federal government progress forecast for this yr might be lower to only 0.2% from 1.3% in October. That is after a 0.3% contraction in 2023.
The decrease forecast is not a giant shock to markets as personal forecasters are already at low ranges however it’s a reminder of the doom-spiral that Germany is caught in.
Financial system Minister Robert Habeck
