The Wall Street Journal noted in an article today (8/15/12) that the euro-zone’s two largest economies avoided shrinking between April and June, but the resilience of Germany and France wasn’t enough to prevent the currency bloc’s economy as a whole from falling back into contraction.

The Journal said the euro-zone’s $13 trillion economy is shrinking, data published Tuesday showed, a development that threatens to worsen a global slowdown and intensify the debate about Europe’s attempts to restore confidence in the currency union.

The Journal noted that Germany’s deceleration suggests the debt crisis in Southern Europe is steadily dragging down the Continent’s financially healthier northern economies, putting the currency bloc on the verge of renewed recession.

To read the full Wall Street Journal article click here.