In the June Economic update video for eZonomics, ING senior economist Teunis Brosens said a “big plan” was needed for Europe. It required bold steps “towards more integration and political union”.
“European Central Bank president Draghi hinted that such steps may be rewarded with more supportive ECB action,” said Brosens.
“But we reckon that progress will remain very slow.”
Brosens highlighted economic woes in the United States and China as well.
Upcoming elections in the United States had deepened political paralysis. China had problems too but politicians there had been quick to move with a “surprise” interest rate cut. Brosens said the cut was interpreted as the start of a more accommodative policy stance.
“This should support Chinese growth in the remainder of the year,” he said. “That would be highly welcome, as Europe sinks ever deeper in crisis and the US remains adrift.”