France, Germany return to growth in 2nd quarter

One reason I’ve seen stated for this is that the French and German governments spent billions bailing out manufacturing businesses, not trillions bailing out the banks and Wall Street, like the U.S. has done. Apparently it makes a difference where you throw your bail-out funds.

From Yahoo! News:

LONDON – Government programs to support the auto industry helped Germany and France return to economic growth in the second quarter, rebounds that stoked hopes the recession in the wider 16-country euro area may also end sooner than thought.

Europe‘s two biggest economies each saw growth of 0.3 percent from the previous three-month period, surprising analysts’ expectations for equivalent declines and technically ending their worst recession in decades.

The French and German increases marked a stunning turnaround from the previous quarter, when Germany shrank by a massive 3.5 percent and France contracted by 1.3 percent.

Read the rest:

http://news.yahoo.com/s/ap/20090813/ap_on_bi_ge/eu_eu_economy

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