The latest GDP figures have finally confirmed what we have long been expecting – the “Big Boys” in Europe are on a crossroad and Britain is taking on a different path from other major economies in the region. This condition has stirred some serious discussions about the possible major changes in the Eurozone’s economic landscape.

Economists and major stakeholders are feeling upbeat about the recent developments in Germany, where we saw a growth of 1.5 percent in the economy during the first quarter of the year. Whilst this is not enough to trigger major positive results at least in the short term, some pundits agree that these are enough reasons for us to feel optimistic about the prospects in the immediate future.

This reserved sentiment can be largely attributed to the prevailing conditions in these major economies in Europe. Concurrent and lagging indicators are not really enough to bring about a positive outlook in the near term. Personal consumption has not really posted any significant change and consumers are still on borrowing mode as we see an uptick in the demand for payday loans and similar short term credit instruments.

Germany remains guarded even with the recent positive development in the economy. Experts are fully aware that the country’s economic fortunes will largely be defined by the developments in the rest of the World. Added to that is the fact that the country remains economically and politically dependent on the goings-on down south. Case in point is the economic downturn in Portugal and Spain.

There is a raging debate about the tendency of some economic pundits to compare the economy of Britain with that of Ireland, Portugal and Greece instead of our traditional “Big Boys” of Europe such as Germany and France. Interestingly, the IMF have also joined the fray with the release of a recent report on the economies that had been seriously hit by depressed growth, which unequivocally lumped UK with Ireland, Portugal, Spain and others instead of the traditional group where Germany and France belong to. In the subject report, the IMF sounded off the need for these economies to institute drastic fiscal reforms to prop up personal consumption and growth.

Some pundits and observers insist that this issue may all come down to our preferred reference. If you want to feel bad about the economy of UK, then you can just compare our fortunes with that of France and Germany. On the other hand, if you want to feel a bit positive about the goings-on in the economy then you may have to look at what is happening further down south.

In most aspects, it would be more appropriate to compare UK economy to that of the economies of France and Germany as the economic fundamentals of three “Big Boys” are more intertwined than the rest of the economies of Europe. However, the current fiscal challenges may force us to look at the situation in Spain rather than in Germany. Just like what is happening in Spain and despite the positive developments during the early part of the century, Britain has failed to manage the serious imbalances that emerged as its economy continue to grow, particularly those related to the property boom and the phenomenal growth in personal debts, including payday loans and cash advances, and financial sector debts.