Declining confidence in the euro zone to a worse than expected and why the sovereign debt crisis!

Declining confidence in the euro zone to a worse than expected and why the sovereign debt crisis!
Business climate index in the euro area during September to record the level of -1.34 for the worst of expectations comes to the value of -1.20, while the previous reading was amended to -1.18 from -1.21.
And as well as the confidence index fell in the economy in the same period to score 85.0 from 86.1 the previous reading and expectations.
And did not change the final reading of consumer confidence in September / expectations and preliminary reading went down to keep the value of -25.9 and was worse than the previous month's reading of the value of -24.6.
Confidence in the industry fell to -16.1 from -15.4 to the revised previous reading while a worse-than-expected value of -15.0, while confidence in services fell to -12.0 from -10.8 the previous reading.
It is not strange to see declining levels of confidence in the euro zone, especially in light of the uncertainty and lack of clarity as to how to find a radical solution to the sovereign debt crisis in the region, and although the European Central Bank to announce purchase program sovereign bonds to lower borrowing costs for countries with financial distress in the region but it was not enough to reassure the markets and boost the confidence level.
Overall situation is uncomfortable, Spain is still stalling on request international assistance, and Italy on the same platform while experiencing Greece from political pressure and external and undergo pressure from international lenders to provide plans austerity convincing until facilitate access to packages remaining aid.
The economic situation is not satisfactory at all and can have the most impact on confidence is weak labor market, the unemployment rate worse record level by 11.3% in August / August and was the highest since the European currency consolidated, the direction governments to austerity policies were a contributing factor in the occurrence and Back the European economy into deeper recession.
Euro-Zone economies seventeen achieved a contraction of -0.2% in the second quarter and forecasts indicate the possibility of continued weakness until the second quarter and thus enter into formal recession. This comes in parallel with the European Bank forecasts consistently twice the pace of growth during the current year.
Bank in his latest report has modified its forecast for growth for the worse in terms pointed to the possibility of check a contraction of -0.4% and worse than it was expected in June / last June to achieve a contraction of -0.1% for the year 2012.

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