A tranquil day ending the calm week as today major economies lack economic data while Germany is scheduled to release its producer prices in which we continue to see support that prices are easing their decline as the recessionary effects loosened its grip on economies.
The focus now in Europe is not on the weak growth, yet is majorly on the swelling budget deficit that is haunting the economic outlook for nations, especially in Greece that deals with a budget deficit of 12.7% of GDP.
The EU finance ministers has said to financially aid them, while Greece gave them a week deadline for them to come up with the financial aid measure, while Prime Minister George Papandreou said they may seek aid from the International Monetary Fund (IMF) if at the summit of March 25-26, a lending facility is not introduced.
The ECB President Jean-Claude Trichet and French President Nicolas Sarkozy are already against the idea of seeking aid from the IMF, as they believe that the euro zone can handle their own problems.
Producer prices from Germany for the month of February was reelaased showing decline to 0.0% from 0.8%, while on the year it inclined to -2.9% from -3.4%.
Inflationary pressures in the euro zone are tamed over the medium term as projected by Jean-Claude Trichet, the measures applied by officials have helped increase prices in the nation that were once heavily pressured from the worst economic recession since WWII.
Eyes now are on the EU summit next week after this week, the EU finance officials said they will provide emergency loans to Greece without providing details of the measures.
