Eurozone growth still a distant prospect

For both Italy and Spain, it is growth ultimately that will determine whether their debts are sustainable and whether they can retain their membership in the euro

Tuesday 3 July 2012 at 06:43

After the warm glow of the eurozone summit comes the cold water of economic reality.

Eurozone unemployment hit a record 11.1% in May, and manufacturing purchasing managers' indexes in Europe and the US showed sharp contractions in June. That puts the eurozone leaders' agreements in context: for governments struggling with growth, self-help remains the order of the day. The accelerating downturn just makes the problem more urgent.