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Eurointelligence: Harsh winter threatens economic recovery
The eurozone may have been unter attack, but the real economy has performed better than widely forecast. But the harsh winter weather is now undoing the recovery. FT Deutschland reports that German retailers no longer hope to achieve a record Christmas sale as they did a few weeks ago. A lot of customers have stayed at home, as the country's rail transportation system has totally collapsed. The best the retailers now hope for is to achieve a similarly good result, in nominal terms, as in 2006. The problem is also similar in other European countries - except curiously, France, where business has been buoyant. The outlook in Spain is bleak. The FT quotes a study by Deloitte, according to which Christmas spending in Spain fell from €951 per household to €655 this season.

One factor behind the winter chaos are savings decision by governments, railroad and airport operators, who are simply not equipped to deal with heavy amounts of snow.



Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Carrie (migeru at eurotrib dot com) on Tue Dec 21st, 2010 at 12:31:15 PM EST
s the country's rail transportation system has totally collapsed.

What do they mean by "totally collapsed"? My impression (confirmed by the DB website) is that they have had some delays, but the main problem is overfull trains as they are about the only means of transport in Germany that is working.

by gk (gk (gk quattro due due sette @gmail.com)) on Tue Dec 21st, 2010 at 01:05:49 PM EST
[ Parent ]
Yep. Last week when I crossed Germany on train, all trains were late due to the temporary 200 km/h limit, and one ICE I satstood in was chock-full. But I did get to my destination (with a snowstorm starting when I got to Munich).



*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Tue Dec 21st, 2010 at 02:39:58 PM EST
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It's going to kill businesses that might otherwise survive. Retail in particular, but restaurants too - and the disruption wrecks small business cash flow too.
by Colman (colman at eurotrib.com) on Tue Dec 21st, 2010 at 01:11:08 PM EST
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This should be great for Spain since it isn't snowing this far South and all that matters is that your own growth figures are not worse than your neighbours'...

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Carrie (migeru at eurotrib dot com) on Tue Dec 21st, 2010 at 01:59:58 PM EST
[ Parent ]
you are too young to be that cynical!
by stevesim on Tue Dec 21st, 2010 at 02:25:27 PM EST
[ Parent ]

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