facebook
twitter
rss
account
search
search
 

New economic forecast for Europe is grim

May 3, 2013 at 1:15 PM   |   Comments

BRUSSELS, May 3 (UPI) -- The European Commission, downgrading predictions made in February, said Friday the economy in Europe would shrink through 2013.

The commission had projected slight economic growth in the 27-member European Union and a 0.3 percent contraction in the 17-member eurozone, but those figures were changed to a contraction of 0.1 in the EU and a drop of O.4 in the eurozone.

The New York Times reported the commission expects unemployment to reach 11.1 percent in the EU and remain at 12.2 percent in the eurozone.

If the projections hold true, it would mean an extended recession.

National governments should "do whatever it takes to overcome the unemployment crisis in Europe," Olli Rehn, commissioner for economic and monetary affairs, said in a statement.

"Fiscal consolidation is continuing but its pace is slowing down. In parallel, structural reforms must be intensified to unlock growth in Europe," he said

Rehn's support of austerity budgeting has been broadly unpopular in Europe. The lack of stimulus spending has frequently been criticized as holding back economic growth.

Topics: Olli Rehn
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
FBI arrests Google employee accused of nude photo scam FBI arrests Google employee accused of nude photo scam
2
Navy tests MQ-8C unmanned helos Navy tests MQ-8C unmanned helos
3
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
4
Harris selected for geospatial data products Harris selected for geospatial data products
5
Sweden plans to replace its Defense and Security Export Agency Sweden plans to replace its Defense and Security Export Agency
Trending News
Around the Web
x
Feedback