German and French economies surge in second-quarter
The French and German economies surged in the second quarter of 2010 amid hopes that the European economy may not be as weak as many had initially predicted. The performance of the German economy was particularly impressive with growth reported at 2.2% in the second quarter of 2010 which is a record since the country was unified. The French economy also improved by 0.6% in the second quarter of 2010 with both results significantly better than analysts had predicted. So what does this mean for the European economy?
There is no doubt that Germany and France dominate the euro zone and the European economy as a whole. As such, a significant improvement in these two economies will have a very positive impact upon the Euro zone as a whole and should hopefully drag other European economies back into positive territory. This comes at the end of a dire period for the European economy with the Greek debacle causing mayhem in money markets and investment markets.
However, while these figures are significantly better than expected there are a number of major budget cuts coming into play around Europe which will temper economic growth to say the least. We are not out of the woods yet!
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