It also has dangerously low inflation
Concern that the 18-country currency union, which accounts for 17 percent of the world economy, has no clear path out of its economic trouble is among the key factors in this week's global market turmoil. The Stoxx 50 index of top eurozone stocks fell as much as 6.3 percent this week before recovering somewhat Friday. It is down 5.7 percent over the past three months.
The eurozone saw no growth at all in the second quarter after only four quarters of sluggish recovery. It also has dangerously low inflation, which can depress growth over years, if not decades, as happened in Japan. A sudden decline in exports and industrial activity in Germany, long the region's source of growth, heightened those concerns.
There are several big ideas about how to boost growth — for the long term. A free trade agreement with the United States, a Europe-wide investment fund to put 300 billion euros into infrastructure, looser employment rules in France and Italy. An ECB review of bank finances due this month could purge hidden losses from the financial system and get more credit flowing to companies.
Yet those ideas will take months or even years to boost economic activity. More immediate help would come from more monetary stimulus from the ECB or increased spending from governments.