To generalize the economic problems of Europe, focus on demand: the lack thereof. In essence, Europe is relying on the European Central Bank to add incremental growth but the logic of growth without demand is illusory at best. The ECB’s latest stimulus plans seem as impotent as previous programs such as the much maligned OMT. Add to this the fact that ECB Head, Mario Draghi, did not seem his hyper confident self at his last press conference where he announced the details of the Asset Backed Securities purchase program. Again, the ECB has demonstrated that after hand wringing and institutional-speed (molasses-like...) deliberations, the ECB will act. The question is whether anything the ECB does now is sufficient and whether monetary policy at all, can be counted on to spur economic growth rather than just financial asset price increases.
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