[Le Républicain Lorrain] European Economy On Verge of Recession

After the market crashes of September, investor confidence is yet to 

recover, and negative GDP growth might be soon approaching

November 8th, 1998

 

With limited financial recovery options available to its economies, Europe has found itself in a tricky 

situation. The recent market crashes have left hundreds and thousands companies all across the subcontinent

 reeling, with many filing for bankruptcy. As famed economist Daniel Adams reports, “faith in European 

companies is scarce, and GDP growth is rapidly falling”. 

 

In worse news, while the recent Eurobond initiative passed by the IMF has alleviated the illiquidity issues it 

faced, the funding provided by European countries like France and Germany -- while mild -- has 

nonetheless lowered the affected governments’ available funds.

 

However, there seems to be a silver lining to this crisis. The Eurobond initiative has forced nations 

receiving IMF loans to enter contracts with European companies as part of its conditionality, allowing for 

some form of economic stimulus for these crippled economies. Albeit, this is limited mainly to the larger 

European economies like the UK and France that have massive corporations, leaving poorer nations like 

Greece further in the pits. 

Location: Lorraine, France

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