Austerity vs. Recovery

By Greg Scoblete
November 15, 2011

The eurozone is closer to falling into recession

More bad news from Europe:

'The eurozone is closer to falling into recession after the regionâ??s escalating debt crisis triggered a sharp drop in industrial output in September.

Eurozone factory production decreased by a much larger than expected 2 per cent compared with August â?? the biggest monthly fall since September 2009, according to Eurostat, the European Unionâ??s statistical office. Italy and Portugal saw particularly steep monthly declines.

'

Squeezing demand still further by imposing strict austerity measures now seems guaranteed to reinforce this negative cycle, rather than break it...

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