Virtue unrewarded

摘要

Hopes that the euro-area's economies might be perking up have been dashed by the latest GDP figures. The area grew at an annual rate of only 1.2% in the third quarter, half as fast as in the first half of 2004. The two biggest economies, France and Germany, grew at annual rates of only 0.4%, compared with 3.7% in America. Not only is domestic spending still weak; exports, hitherto the main driver of growth, have slowed. Fears are mounting that another rise in the euro could tip Eu-.. rope's economies back into recession. Since the end of 2000, America's output has grown more than twice as fast as the euro area's (see chart). Euro-pessimists see this as further evidence that arthritic economies are being held back by lazy workers and by governments unwilling or unable to carry out reforms. In contrast, America's more robust recovery, it is often said, reflects its amazing flexibility.