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| The symbol of the Euro in front of the European Central Bank in Frankfurt. (Photo credit: Wikipedia) |
The Ifo data came as a disappointment after the E.C.B.’s president, Mario Draghi, said Sept. 6 that the central bank was prepared to buy Spanish and Italian government bonds in unlimited quantities if necessary to reduce the pressure on the embattled governments’ financing costs.
That move has helped to smooth financial markets, and raised hopes that the crisis might at long last be contained. But the E.C.B. action, which remains contingent on governments meeting their fiscal commitments, has not paid immediate dividends for economic sentiment at a time when the global economy is slowing.
The decline in the business survey “is a reminder that even the euro zone’s strongest economies are suffering from a severe economic downturn,” Jennifer McKeown, an economist in London with Capital Economics, wrote in a research note. The data suggest a decline in German gross domestic product of about 1 percent, she added. ... Continue to read.
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