“Hello David, behind the "Eurozone in Deflation" headlines, the reality is more nuanced, and the outlook less grim than headline writers perhaps assume (plus ca change?). See: Eurozone core inflation stable / Germany at full employment.

“Germany's increasingly tight looking labour market, referred to by Simon, also suggests an outlook somewhat more positive than generally assumed. Perhaps, therefore, additional monetary easing by Draghi - should it occur as expected - may prove be a tailwind for a turn that's already commencing?”

David Fuller's view

Good point and I thank you for it.  The oil price drop exaggerates the present headline deflationary picture and is in any event a positive development for Europe and all other oil importing regions.  However, it is still a delicate economic situation for the EU, and I would like to see more pro-GDP growth policies.  The whole world would benefit from a more prosperous EU and not least Europeans.