Where is Europe going?

Europe is in danger of sinking. The crisis has finally reached the core of its strongest economies in Germany, France and Italy, and trouble in these nations could spread to other European nations as well. The president of the European Central Bank (ECB), Mario Draghi, stated last week that the euro zone's recovery is fragile. And he is right.

The worst omens have come to pass. The German economy contracted by 0.2% in the second quarter, which marks its first decline since Q1 2012. In France, cosmetic cutbacks were not able to stimulate the country's economy and get it out of a recession. In Italy, Renzi has not been able to act, and no more cutbacks or reform measures are expected.

Pessimism dominates the region, which is seeing some late adverse effects of the trouble between Russia and Ukraine. These countries have slow economic growth, shaky spending and low inflation, and they are going through a lot. In recent months, Spain has taken the lead as far as getting out of the crisis, because it is the only country that has carried out its reforms. But the rest of the Old Continent is stuck. Markets and experts hope that the ECB will continue to stimulate the region's economy by emulating the US Federal Reserve's QE plan.

Another option is to pump a lot of money into these economies in order to spur inflation, nix the fear of deflation and make the euro cheaper. This would help boost foreign sales. Draghi should follow through with his promise to "do whatever is necessary."