Emergency growth-stimulating policies are still needed to support continental Europe's fragile economic recovery, even though Germany and France have emerged from recession, a top European Central Bank policymaker has warned.
Axel Weber, Germany's Bundesbank president, made clear he would not rush to withdraw the extensive measures taken by governments and the ECB – which he said had helped the recent improvement in economic performance in Germany.
His comments come as the Financial Times publishes its latest European economic weather map, which shows the mixed conditions across the Continent. Germany and France last week both reported that gross domestic product had risen by 0.3 per cent in the second quarter, compared with the previous three months, marking the end of their recessions. But Spain and Italy reported further sharp contractions.