The European Central Bank’s attempts to get the eurozone economy growing again have suffered a major blow. <br /><br /> Its second offering of loans at almost zero interest did not get much of a take up from commercial banks. <br /><br /> Of the 400 billion euros of ECB loan money on offer this year, the banks have availed themselves of only just over half. <br /><br /> They say the region’s economy is in such a poor state that there is weak demand for loans from businesses. <br /><br /> The low take-up makes it all but certain the ECB will soon be printing fresh money to buy government bonds, pumping billions of euros into the region’s economy. <br /><br /> But there are deep divisions within the ECB on that with Germany fearing it would encourage reckless borrowing by spendthrift states which already have huge debts.<br /><br /> The other problem overshadowing the eurozone is the prospect of deflation. <br /><br /> Underlining the gravity of the situation, France’s core price inflation turned negative, its first drop since records started in 1990.<br /><br /> If price inflation starts falling across the eurozone, the ECB would be left with no choice but to print more money immediately. <br /><br /> Deflation is seen as dangerous for an economy, as consumers put off buying things in the hope that prices will fall further, ultimately forcing companies out of business.
