More bad news for the Euro zone, Italy has gone into recession. (GDP fell 0.7% in last three quarters of 2011, following 0.4% fall in previous quarter). Even Germany doesn’t appear immune to the Euro crisis, with German GDP falling 0.2% in last quarter.
With all signs pointing to a serious European recession, Daniel Mitchell, of the libertarian-minded Cato Institute, argues that Europe has not been austere enough and that much more is needed. “European countries talk about austerity but they don’t mean cuts,” he says. (Guardian Link).