European Economy. Quarterly report on the euro area 2009.

Abstract

The euro-area economy has entered a phase of stabilisation. Determined and concerted policy action successfully prevented the economy from falling into depression. Signs of improvement in the economic situation have become increasingly apparent since the start of this autumn. Growth in both Germany and France surprised on the upside in the second quarter and pulled the euro area up. More good news is likely to be in store as the global economic environment is improving, the inventory cycle is set to turn and further, already planned, discretionary policy measures are becoming effective. There is reason for caution, however.