Diverging Euro Zone Economies Complicate Monetary Policy（ZT）

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http://online.wsj.com/article/SB120024711540886727.html?mod=hpp_us_whats_news

By Emma Charlton

Word Count: 857

LONDON -- The euro zone's 15 economies are diverging as the 2008 growth outlook darkens, complicating the ability of the European Central Bank to forge a monetary policy that that fits the bloc as a whole.

Italy, Spain and other Southern European economies so far are bearing the brunt of the strong euro, financial market turmoil and a repricing of risk.

By contrast, Germany is enjoying an export boom that is offsetting a tepid consumer economy at home and France, after several rocky quarters, is showing signs of economic revival.

"There's set to be a reconvergence between France and Germany," ...