Berlin and Brussels credit fiscal discipline and reform for eurozone recovery

Policymakers in Brussels have trumpeted a return to growth in the eurozone as proof that a combination of fiscal discipline and economic reform is starting to bear fruit.

The eurozone emerged from an 18-month recession in the second quarter thanks to rebounding economies in Germany and France, ending the longest contraction since the euro area’s creation in 1999.

Overall, the 17 nations that make up the euro area grew by 0.3 per cent from April to June. Germany, which holds federal elections on September 22, grew by 0.7 per cent on the back of robust manfucturing output and consumer spending, while France beat expectations with 0.5 per cent growth, ending its double dip recession. Portugal emerged from a severe contraction, with growth of 1.1 per cent.