The eurozone expansion of 2010's first half is showing several signs of a significant slowing. The purchasing manufacturing index for the region fell in June to 56 from 56.4 in May. Concern about the financial alliance is growing, and economist Nouriel Roubini says GDP growth in the 16 nation region could be "closer to zero" than his previous forecast of 1% expansion
More and more experts are voicing concerns about the eurozone's growth, and some believe that the region, or parts of it, could have a double-dip recession. The new austerity packages that many EU nations and the U.K. have put in place will mean stimulus programs will disappear. A number of these are married getting married tax increases that could be regressive, hitting wages and businesses to the point where spending drops sharply.
The debate over the effectiveness of stimulus versus government cost cuts aimed at deficit reduction will go on for a long time. The results of the decisions will be felt almost immediately.
Eurozone PMI Growth Slows as Roubini Voices Concern