WASHINGTON — The worst is yet to come? What if the worst is already at your doorstep? This is the situation that Germany and the rest of the eurozone faces in the upcoming weeks as economic growth is at a standstill.
Unemployment throughout the eurozone sits at 12%, youth unemployment as high as 50% in countries like Spain, and government spending can only do so much. Europeans are tired of austerity measures, or what Americans would call budget cuts, and Europe is looking elsewhere for more revenue.
Reuters reported that Germany’s economy grew slowly at 0.1%, but France’s economy contracted and fell back into a recession. The eurozone is now in its longest recession since records began in 1995. It was worse than expectations, contracting 0.2% over the past three months instead of the 0.1% that was anticipated.
Joining France in recession are Finland, Cyprus, Italy, The Netherlands, Portugal and Greece. Spain’s economy contracted for the 7th straight quarter.
France has proposed a “Google Tax” to help offset government spending and both Britain and France are investigating Google for supposedly avoiding certain taxes by labeling their sales representatives as support staff.
Cyprus and Greece has also struggled, with Cyprus nearly toppling the eurozone economies with its banking crisis. Until Russia stepped in and offered a generous relief package, the eurozone was in full-blown crisis mode.