Dithering Turnaround in the EU in Spite of Vigorous Signals from the USA

In the EU, the economy is once again, creakingly, on the road to expansion, powered chiefly by the growth of domestic demand in the USA. Within Europe, internal demand has so far been lacklustre. Unemployment will rise throughout this year, but should move down again next year, in response to the increasingly dynamic upswing. For the time being, no inflationary pressure of any significant proportions is visible on the horizon. The revival may yet be threatened by a greater propensity to save in the USA, crude oil prices driven up by the crisis and a large-scale government austerity package in Germany.