Growth plans look futile as German activity falls

European policymakers focused again last week on the need for growth in the region, with Wednesday’s informal EU summit ending in pledges to speed up structural reforms, strengthen job creation and encourage investment using “Project Bonds”. But all of this looks like too little too late. With May’s PMI survey suggesting that even previously resilient Germany has succumbed to the economic gloom, the euro-zone appears to be heading into a deep recession that will increase the chance of a break-up and put further downward pressure on the euro exchange rate.