"Spain seeking shelter under the rescue package and the optimum outcome of the election in Greece are failing to bring about any significant easing of the cycle of debt. Forecasts call for recession in most parts of the eurozone after the consolidation measures are implemented and with the deterioration of the important economic indicators," reports Peter Brezinschek, Chief Analyst at Raiffeisen Bank International (RBI) in the Raiffeisen Research quarterly publication "Strategy Global Markets". Brezinschek expects eurozone GDP to fall to minus 0.3 per cent in 2012 and does not anticipate a return to growth before 2013 (0.8 per cent forecast).
In Brezinschek's view, the call by some politicians for "growth instead of savings" is not the right way forward for the eurozone: "This provocative theory is fundamentally flawed since saving funds investments, therefore paving the way for long-term growth in the first place." However, Raiffeisen's Chief Analyst assumes that despite this, the EU will realize a compromise with, for example, project bonds for infrastructure or increased co-financing of structural and cohesion fund projects in the eurozone periphery countries.