According to data released this week, the Eurozone hovers over the prospect of a recession, and there is no policy consensus over how to react. Europe's biggest economy, Germany, narrowly escaped recession, technically defined as two consecutive quarters of negative growth. The French economy, which outperforms German, is also decelerating, with an immediate impact on the labour market.

The two biggest economies are slowing down as Europe’s export-driven economy is particularly exposed to the...