July 6, 2008
3rd part of our series on the EU after the Irish No to the Lisbon Treaty
The economic outlook for the euro area is deteriorating fast: This week has brought a number of new indicators pointing at a sharp slow-down ahead. Not only are signs mounting that the first countries on the fringe of the euro area such as Ireland and Spain may now be in recession, but there are now also some first indications that Germany, long seen as the most robust economy of the euro area at the moment, is also heading for a significant slowdown. Negotiations on an new protocol to complement the Lisbon Treaty or on a revised version of the Treaty will hence take place in a difficult economic setting. This could turn out to be particularly problematic for Ireland, which may face a second referendum on the Lisbon Treaty.