A possible recession could strike again in Europe, especially in countries like Italy, Germany and France. Grouppo AB, European cogeneration scenario, believes that Italy has a unbalanced coalition government due to which they want to expand market outside Italy, which would cause a recession in Italy. Enzo Losito even stated that unstable government can bring Italy to Greece’s level. The situation will only worsen if the government in Italy does not get their act together. Further failures can cause jobs, stagnation and even greater political discontent.
On the other hand, Germany’s recovery has been negative 0.4 and France’s economy contracted by 0.1 per cent in the third quarter. Three of the biggest bloc countries have suffered small contractions. However, all these results haven’t come as a great surprise as the Finance Minister Pierre Moscovici was expecting it due to the unstable government. All of this could cause a decline in long run dampening growth.
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