Upbeat Europeans
August 16, 2007
The quarterly economic climate index for the euro zone rose from 106.8 to 111.9 points, officials for the Munich-based Ifo Institute for Economic Research said.
The survey is based on interviews with 258 experts from multinational companies and institutes.
"The latest survey results indicate that the economic upswing will continue in the second half of 2007," said Hans-Werner Sinn, the institute's president, in a statement.
Boom time
Sinn added that the economic situation in Austria, Finland, Germany, Ireland, Luxembourg and the Netherlands was considered extremely favorable and comparable to the mood during the new economy boom in 2001.
Within the euro zone, only Portugal's economic situation was described as poor.
Sinn added that expectations for the coming six months were positive in all euro zone countries with the exceptions of Ireland and Spain, where experts forecast a slowdown in the second half of the year.
The interviews were conducted at the end of July and the beginning of August and do not take into consideration the last 10 days. Institute officials pointed out, however, that the stock market downturn cause by the US real estate crisis had already begun at the time the experts were surveyed.
Sarkozy wants transparency
In a letter to German Chancellor Angela Merkel, who currently chairs the Group of Seven most industrialized nations (G7), French President Nicolas Sarkozy on Thursday meanwhile called for steps to improve transparency in world markets.
While writing that he didn't believe that the current turmoil in US credit markets would have a long-term effect on growth, Sarkozy added that transparency was needed.
"That is the main instrument of regulation upon which we can rely", to ensure the ability of world markets to "efficiently and stably finance the world economy," Sarkozy wrote, according to AFP news service.
Sarkozy suggested that G7 finance ministers "give their attention to these questions in the coming weeks, in liaison with our central banks, the Financial Stability Forum and the IMF" and "submit us a report of their analysis and proposals at their meeting in October in Washington."