Concerns about protracted economic weakness in the euro zone

S&P Global analysts have expressed concerns about protracted economic weakness in the euro zone, not just concern on the eurozone but into other parts of Europe (mainly central Europe).

S&P highlight:

• “One of the key risks which we see is what could be a more protracted weakness in advanced Europe, including Germany,”
• weaker growth could put pressure on public finances and put government debt on the upward path

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This is leading to expectations of sooner and deeper European Central Bank cuts:

• ECB’s de Cos hints at sooner rate cuts – inflation slowdown will continue, growth slowing

This article was written by Eamonn Sheridan at www.forexlive.com. Source