THE economical crisis in the Eurozone worsened yesterday as new data revealed that industries within the failing EU project are experiencing new lows of confidence, particularly in the industrial sector.
The European Commission reports that factories became even more glum this month, as trade war worries and a “substantial deterioration” in industrial confidence dragged its monthly gauge of economic measure down to just 101.7 points from 103.1 in August – the weakest since 2014.
The news comes just a day after the CEO of banking giant Deutsche Bank warned that Germany was in danger and that the European central bank does not have the tools left to “cushion” a “real economic crisis” as Angela Merkel’s economy teeters on the edge of a crippling recession.
His warning comes after EU member states were warned the Eurozone is headed for a “fresh crisis”, bigger than the 2011-2012 disaster.The eurozone economy came close to stalling in September after sharp declines in global trade and a possible no deal Brexit triggered a fall in manufacturing output. The fall, the fastest in nearly seven years, raised alarm bells for economies across Europe and added further pressure to arguments in favour of a strong and tightly regulated eurozone.
Output across EU members states such as Germany and France fell at the sharpest rate since 2012 and optimism among business executives fell to its lowest level for seven years.
Among those worse hit were car manufacturers by a rise in Chinese and US import tariffs, as well as preparations for the UK’s departure from the EU.
With the EU project heavily relying on milking its cash cow – the United Kingdom – to survive, we can now see the real reason that the likes of Merkel and Junker are willing both Boris Johnson and Brexit to fail.