Cheap oil and weak euro could drive Europe’s growth

The cut in world oil prices could help growth in the eurozone (photo: dpa)
The cut in world oil prices could help growth in the eurozone (photo: dpa)

Fears about inflation throughout the eurozone seem to have lifted. This can be both good and bad news. Cut-price oil and a weak euro could drive growth in the eurozone but the key to sustained growth will not be found in Quantitative Easing. In fact, troubled eurozone countries remain in need of substantial reforms.

<i>The European Central Bank seems focussed on showering commercial banks with new money. But Quantitative Easing will not fix all the problems over the next 18 months. These are rooted in a lack of structural reform and growth. Eurozone prices have dropped 0.6 per cent in the last 12 months and signs are that prices will remain stable. </i>

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