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EUROZONE

Industrial output notches up ‘soft’ decline in March

The plunge in recession-wracked Spain's industrial production eased in March to a 0.6 percent year-on-year decline, official data showed on Thursday.

Industrial output notches up 'soft' decline in March
The March fall in Spain's industrial output was driven by weakening production of durable consumer goods. File photo: Ben Husmann

The seasonally-corrected figure from the National Statistics Institute followed a 6.9 percent fall recorded for February in the eurozone's fourth biggest economy.

It was the softest decline since August 2011, just before the latest recession started.

Like February's figure, the March fall was driven by weakening production of durable consumer goods, the institute said.

Production in the capital goods and energy sectors strengthened by 3.3 percent however.

Industrial production had fallen by 4.9 percent in January, 7.1 percent in December and 7.0 percent in November.

In its efforts to strengthen the public finances Spain's conservative government has imposed tough economic reforms that have curbed consumption.

It forecasts the economy will contract by 1.3 percent this year.

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BUDGET

Paris, Berlin agree on future eurozone budget: French ministry source

France and Germany have agreed on the broad outlines of a proposed eurozone budget which they will present to EU finance ministers in Brussels on Monday, a French finance ministry source said.

Paris, Berlin agree on future eurozone budget: French ministry source
French Economy and Finance Minister Bruno Le Maire (R) and German Finance Minister and Vice-Chancellor Olaf Scholz. File photo: AFP

The common single-currency budget was one of French President Emmanuel Macron's key ideas for protecting the euro, but it caused differences between France and Germany, the region's two largest economies.

French Finance Minister Bruno Le Maire and Germany's minister, Olaf Scholz, will “jointly present a proposition on Monday… about the layout for a budget for the eurozone,” the ministry source told AFP.

“It's a major step forward,” the source said. “We will look forward to sharing with other members.”

The source said the amount of the budget has not been established as the proposal was to first set out the “architecture and main principles” of the budget.

According to a copy of the French-German proposal, the budget would be part of the EU budget structure and governed by the 19 euro members.

Macron will travel to Berlin at the weekend to meet with German Chancellor Angela Merkel where the two leaders will bolster their alliance as champions of a united Europe.

READ ALSO: France and Germany push for compromise on eurozone reform

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