Evening Must-Read: Bloomberg View: Stopping Europe’s Descent Into Deflation

Bloomberg View: Stopping Europe’s Descent Into Deflation: “Until recently it was debatable…

…whether Europe’s economy was recovering. No longer. Its recovery has stopped. The question now is whether the stagnation will tip over into something worse…. The preliminary estimate of euro-area inflation in August from a year earlier is 0.3 percent…. There’s no growth in the euro area…. What can the ECB do? Draghi says the bank has already acted…. Yet the package of measures the ECB unveiled in June didn’t amount to much…. It’s past time for Draghi to push through those difficulties and test the limits of what politics and the law will allow…. Europe also needs to rethink its fiscal policy…. If Europe’s long recession gets worse, it will be because its leaders saw what was happening yet chose not to act.