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Summary of "Europe already has one foot in the 'Japanese' deflation grave"

Ambrose Evans-Pritchard, in The Telegraph of October 23, 2013 analyses the risk of deflation for the Eurozone.

According to the author, Europe is at risk of deflation which would cause the debt in the affected countries to rise. This would be devastating for countries like Spain or Italy that are already having serious debt issues. Their chances to stabilize the national debt decrease sharply with every percentage point inflation drops. Furthermore, austerity measures are widely unpopular in these countries, making it even more unlikely that they will ever be able to achieve a balanced budget.

Evens-Pritchard thinks that a rising inflation rate would prevent deflation from happening, but Germany wants inflation to stay low, because a low inflation rate helps their economy in the short run. However, if deflation settles within the Eurozone, it could soon spread to Germany as well. The author states that the Club Med allies, including France and Italy, should unite in the European Central Bank’s governing council and force Germany to accept a higher inflation rate of around two percent. Instead of imposing counter-measures against deflation the European policy leaders seem to hope for a decade of global growth to help them solve their debt-crisis.

Here's the version that incorporates my teacher's feedback:

Summary of "Europe already has one foot in the 'Japanese' deflation grave"

Ambrose Evans-Pritchard, in The Telegraph of October 23, 2013 analyses the risk of deflation for the Eurozone.

According to the author, Europe is at risk of deflation which would cause the debt in the affected countries to rise. This would be devastating for countries like Spain or Italy that already have serious debt issues. Their chances to stabilize the national debt decrease sharply with every percentage point inflation drops. Furthermore, austerity measures are widely unpopular in these countries, making it even more unlikely that they will ever be able to achieve a balanced budget.

Evans-Pritchard thinks that a rising inflation rate would prevent deflation from happening, but Germany wants inflation to stay low, because a low inflation rate helps their economy in the short run. However, if deflation settles within the Eurozone, it could soon spread to Germany as well. The author states that the Club Med allies, including France and Italy, should unite in the European Central Bank’s governing council and force Germany to accept a higher inflation rate of around two percent. Instead of imposing counter-measures against deflation the European policy leaders seem to hope for a decade of global growth to help them solve their debt-crisis.