Euro crisis eases as leaders claim growth is back

Tim Wallace
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SPAIN and France are both back to growth, the troubled countries’ governments said over the weekend, giving rise to hopes that the worst of the crisis is over in the Eurozone.

French President Francois Hollande hit back after credit ratings agency Fitch downgraded his government’s debt to double-A plus on Friday citing high debts and low growth.

Hollande denied the country was in trouble, instead arguing it is on the right track.

“We must not succumb to self-criticism,” he told a French TV station. “The recovery is here. The second half of 2013 will be better than the first.

The President also ruled out shale gas production in France, arguing the economy does not need a boost from the new energy source.

Meanwhile Spain’s economy minister Luis de Guindos said the economy will grow over the next six months, as long as the government keeps reforming markets and cutting the budget deficit.

“The recession is over. The issue now is how strong the recovery is going to be,” he told the El Pais newspaper.

“The recovery is a small flower in a greenhouse that has to be tended to. You tend to it with economic reforms, improving credit in the economy and reducing the fiscal deficit at the correct pace.”