bank - credit crisis - Europe - inflation - subprime - World Economy
Jean Pisani-Ferry, Director of Bruegel
Friday 08 August 2008
One year after the start of the US credit crisis, economic problems are spreading across the Atlantic. We asked Jean Pisani-Ferry, director of the Brussels-based European think-tank Bruegel, whether European economies are heading for a recession.
One year after the start of the credit crisis in the United States, there's growing evidence that economic problems are spreading across the Atlantic.
Europe has moved further along the road towards a recession, with a set of recent data showing that Germany cannot emerge unscathed from the crisis.
A rundown in Europe's largest economy is likely to drag down the performance of the euro zone where several states such as Italy, Spain and Ireland already appear to be edging towards recession.
Even the routinely hawkish president of the European Central Bank, Frenchman Jean-Claude Trichet, has expressed concern about growth prospects for the euro zone.
Is Europe heading for a recession? What can be done to boost the continent's economy? And in the longer term, does Europe need a new economic model?
Jean Pisani-Ferry, a French economist and director of Bruegel, an economic think tank based in Brussels, discussed these questions and others with Raphaël Kahane.
Watch the interview by clicking 'Play Video' above.
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