There is only one problem with chatter about Europe’s “soft landing”: its economy never truly flew. Whereas America’s growth has consistently amazed, Europe’s has been miserable. Exclude Ireland, where statistics are distorted by multinational firms minimising tax, and the EU’s GDP has risen by about 3% since 2019, compared with a 9% increase in America.
Yet Europe’s outlook is undoubtedly improving. Data published on May 15th show that the euro zone grew by 0.3% in the first quarter of this year against the previous quarter. This was the first significant growth in six consecutive quarters and enough for the currency bloc to emerge from a recession. The same day the European Commission upgraded its forecasts for EU growth. “We believe we have turned a corner,” cheered a commissioner.