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Welcome Back! EU Slides Into Recession Again

Nov. 15, 2012 3:22pm
Eurozone Plunges Into Recession

People demonstrate against the government cuts in Pamplona, northern Spain (AP)

The 17-country eurozone has fallen back into recession for the second time in three years as the fallout from the region’s financial crisis was felt from Amsterdam to Athens.

And with surveys pointing to increasingly depressed conditions across the 17-member group at a time of austerity and high unemployment, the recession is forecast to deepen, and make the debt crisis even more difficult to handle.

Official figures Thursday showed that the eurozone contracted by 0.1 percent in the July to September period from the quarter before as economies including Germany and the Netherlands suffer from falling demand.

The decline reported by Eurostat, the EU’s statistics office, was in line with market expectations and follows on from the 0.2 percent fall recorded in the second quarter. As a result, the eurozone is technically in recession, commonly defined as two straight quarters of falling output.

The eurozone economy shrank at annual rate of 0.2 percent during the July-September quarter, according to calculations by Capital Economics.

Eurozone Plunges Into Recession

Demonstrators hold a mock guillotine with a banner reading ‘”Thieves’ cutter’” during July 19, 2012 protest in Madrid (AP)

Because of the eurozone’s grueling three-year debt crisis, the region has been the major focus of concern for the world economy. The eurozone economy is worth around €9.5 trillion, or $12.1 trillion, which puts it on a par with the U.S. The region, with its 332 million people, is the U.S.’s largest export customer, and any fall-off in demand will hit order books.

While the U.S has managed to struggle back from its own recession in 2008-09, albeit inconsistently, and China continues to post strong growth, Europe’s economies have been on a downward spiral — and there is little sign of any improvement in the near-term. Last week, the European Union’s executive arm forecast the eurozone’s economy would shrink 0.4 percent this year. Then only a meager 0.1 percent growth in 2013.

The eurozone had avoided returning to recession since the financial crisis following the collapse of U.S. investment bank Lehman Brothers, mainly thanks to the strength of its largest single economy, Germany.

But even that country is now struggling as exports drain in light of the economic problems afflicting large chunks of the eurozone.

Germany’s economy grew 0.2 percent in the third quarter, down from a 0.3 percent increase in the previous quarter. Over the past year, Germany’s annual growth rate has more than halved to 0.9 percent from 1.9 percent.

Eurozone Plunges Into Recession

German Chancellor Angela Merkel (AP)

Germany’s Chancellor, Angela Merkel, tried to strike a positive note when she spoke to reporters in Berlin Thursday.

“I think we all are working on getting back on our feet again rapidly,” she said.

“We see that economic growth is slowing, that overall we have a small drop in the eurozone but I’m also very optimistic that if we do our political homework … we will again have growth after this small decline,” she added.

Perhaps the most dramatic decline among the eurozone’s members was seen in the Netherlands: Its economy shrank 1.1 percent on the previous quarter.

Five eurozone countries are in recession — Greece, Spain, Italy, Portugal, and Cyprus. Those five are also at the center of Europe’s debt crisis and are imposing austerity measures, such as cuts to wages and pensions and increases to taxes, in an attempt to stay afloat.

But these measures have done little to increase economic growth or stave off record-breaking unemployment rates.

Spain and Greece have unemployment rates of over 25 percent. Their young people are faring even worse with every other person out of work.

Protests across Europe on Wednesday highlighted the scale of discontent and with economic surveys pointing to the downturn getting worse, the voices of anger may well get louder still.

Eurozone Plunges Into Recession

(AP)

“The year that is about to end will be remembered not only for the effects the European sovereign debt crisis has had on the euro and for the significant weakening of the European economy, but also for the responses to these challenges by the ECB, national governments and the European Union,” he said in a speech at Univerisita Bocconi in Milan.

“Ultimately, it is up to governments to dispel once and for all the persistent uncertainties that markets perceive and citizens fear,” Mario Draghi, the European Central Bank president, said.

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The Associated Press contributed to this report. All photos courtesy the AP.

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Comments (53)

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  • KIOTI-TEXAS
    Posted on November 15, 2012 at 9:38pm

    Don’t tell Muslim Obama,he will seen them BAILOUT MONEY……..

    Report this comment

    KIOTI-TEXAS  
  • Steel
    Posted on November 15, 2012 at 7:40pm

    The EU will have lots of company if and when our congress gets done with our economy. If you think the EU is in a recession, wait until you see the one our government creates – and it’s coming as sure as the sun will rise in the morning. Better get ready. It’s gonna happen and it won’t be pretty!

    Report this comment

    Steel  
  • Detroit paperboy
    Posted on November 15, 2012 at 5:36pm

    I think we should all get on WELFARE !!!!!!!!!!!!! YAY……

    Report this comment

    Detroit paperboy  
  • trueamerican40
    Posted on November 15, 2012 at 5:13pm

    Something is going to happen that is going to wake up Americans. The stakes have never been higher. Obummer ran on feelings first and facts later. The facts state that entitlements are unsustainable. Collapse is imminent.

    Report this comment

    trueamerican40  
  • shorelineliz
    Posted on November 15, 2012 at 4:57pm

    Who is Angela Merkel the Chancellor of Germany? Merkel’s father studied theology in Heidelberg and, afterwards, in Hamburg. In 1954 her father received a pastorate at the church in Quitzow (near Perleberg in Brandenburg), which then was in East Germany, and the family moved to Templin. Thus Merkel grew up in the countryside 80 km (50 mi) north of Berlin. Gerd Langguth, a former senior member of Merkel’s Christian Democratic Union, states in his book[11] that the family’s ability to travel freely from East to West Germany during the following years, as well as their possession of two automobiles, leads to the conclusion that Merkel’s father had a “sympathetic” relationship with the communist regime, since such freedom and perquisites for a Christian pastor and his family would have been otherwise impossible in East Germany.
    Like most pupils, Merkel was a member of the official, Socialist-led youth movement Free German Youth (FDJ). However, she did not take part in the secular coming of age ceremony Jugendweihe, which was common in East Germany, and was confirmed instead. Later, at the Academy of Sciences, she became a member of the FDJ district board and secretary for “Agitprop” (Agitation and Propaganda).

    Report this comment

    shorelineliz  
  • The-Monk
    Posted on November 15, 2012 at 4:17pm

    Rock, paper, scissors…. foot.

    Report this comment

    The-Monk  
  • Dscriptboy
    Posted on November 15, 2012 at 4:08pm

    There is no one to blame but ourselves. We allowed this calamity because we no longer watched our politicians, and we have demanded too much in way of services. The only cure is to stop relying on someone else to take care of you. Take care of yourself. And you take care of your neighbor.

    Report this comment

    Dscriptboy  
    • shorelineliz
      Posted on November 15, 2012 at 4:50pm

      The EU was nothing more than an attempt for stronger economies to control weaker economies. Economies like Germany are now in control. Germany? In Control? Didn’t anybody get the memo from WWII? Europe enjoyed all kinds of spending and entitlements for decades. Then they did a stupid thing. They allowed massive immigration from Muslims. Put them all on welfare. It tanked their social programs which tanked their individual economies which tanked the EU. Some economies were never strong to begin with. Ireland was always poor and with high unemployment. Greece and Portugal were never strong economies. But they did okay before the EU. Now Merkel blames everyone. GErmany blaming everyone? Is this WWII again or what? I LMAO!

      Report this comment

      shorelineliz  
  • Mutiny
    Posted on November 15, 2012 at 3:55pm

    History shows this ends only one way. We are on the same path. We have a hugely divided country with tension mounting. I hope after the collapse we turn towards the Constitution and not towards a world government the progressives have been pushing. This has been there plan from the beginning.

    Report this comment

    Mutiny  
    • phillycornerboy
      Posted on November 15, 2012 at 4:12pm

      exactly right. the only problem will be the lack of understanding about the constitution and capitalism. the same is happening in europe right now. they have been lefties for so long they still expect the left to provide an answer. again you are correct that these things will soon happen here. the teachers strike in chicago is a watered down version of whats to come. what were they striking for anyway?

      Report this comment

      phillycornerboy  
  • Landon410
    Posted on November 15, 2012 at 3:55pm

    global warming, bush, tea party people, republicans, libertarians….. they all caused this….

    Report this comment

    Landon410  
    • GlenBeckisGarbage1
      Posted on November 15, 2012 at 4:10pm

      I totally agree.

      Report this comment

      GlenBeckisGarbage1  
    • Larry E
      Posted on November 15, 2012 at 6:23pm

      Yup, all we need is good tight control on everything we do by some progresso-commie commissar who will make sure that anyone who fails to comply will be reeducated. It’s worked so well in so many other places before that it’s sure to work even better here because our progresso-commies are the smartest. Oh, we’ll have to kill off a few million people like Hitler, Stalin, and Mao did, but it’s necessary.

      Sure thing girls!

      Report this comment

      Larry E  
    • CourageousGeorge
      Posted on November 15, 2012 at 11:51pm

      Oh yes, amazing how much power American constitutionalists have, single handedly causing massive debt on Euro-socialist governments and causing their economies to slow at a whim. If only they could have similar control over their domestic presidential election…hmm.

      Report this comment

      CourageousGeorge  
  • progressiveslayer
    Posted on November 15, 2012 at 3:53pm

    Parasite extinction in Europe and the U S will go a long way in making a recovery,let’s face it they’re dead weight.

    Report this comment

    progressiveslayer  
  • Anonymous T. Irrelevant
    Posted on November 15, 2012 at 3:51pm

    “Vielleicht, wenn ich ihnen die alte Scheiße-eating Grinsen sie mich in Ruhe lassen” Merkel thinks.

    Report this comment

    Anonymous T. Irrelevant  
  • Lord_Frostwind
    Posted on November 15, 2012 at 3:50pm

    Germany, RUN! You’re already taking on water, don’t let them sink you with the rest of the fleet! What, oh, too late for that. Man the lifeboats lads, this is going to hurt!

    In all seriousness, if Germany is now taking damage from all this fallout, that’s bad. If the Germans end up falling, then Europe has just crossed the event horizon and nobody is escaping the economic black hole. Then again, we aren’t far behind, “No fiscal cliff,” my Caucasian rear!

    Report this comment

    Lord_Frostwind  
    • shorelineliz
      Posted on November 15, 2012 at 4:52pm

      “Germany-Run”. Seriously? Germany is the one who is supposed to run? Au Contraire. Me thinks everyone should run FROM Germany and Merkel. Nazis. Still.

      Report this comment

      shorelineliz  
  • ZAP
    Posted on November 15, 2012 at 3:45pm

    Time to give anarchy a try?

    Report this comment

    ZAP  
  • Just_Us2
    Posted on November 15, 2012 at 3:42pm

    This is California in a couple of months…they are always ahead of the curve.

    Report this comment

    Just_Us2  
  • ZAP
    Posted on November 15, 2012 at 3:39pm

    How is that Democratic socialism working out for you Europeans

    Report this comment

    ZAP  
  • progressiveslayer
    Posted on November 15, 2012 at 3:36pm

    Wow really you mean to say socialism doesn’t work? Hmm somebody tell the worthless Marxist pig that Marxism doesn’t work either. He won’t listen because he’s a narcissistic bastard and he’s been told he’s the smartest man in the world. He read a book by Karl Marx and thought it would be a great idea for America,it seems roughly half the country a bunch of moronic parasites feels the same way.

    Half the country will support the other half that refuses to work until the system collapses and it will just like every other country destroyed by communism and socialism.

    Report this comment

    progressiveslayer  
  • RaydocX
    Posted on November 15, 2012 at 3:34pm

    grab your britches, we’re about to head right along, lacking the electorate wisdom to put a business person into administration instead of a community organizer.

    although in complete honesty, this president and the democratic congress of the first two years of his reign likely did sufficient damage to have been insurmountable…

    Report this comment

    RaydocX  
  • GhostOfJefferson
    Posted on November 15, 2012 at 3:33pm

    Geesh, with all of that wonderful socialism, you’d think that they’d be darting out ahead economically. Whatever could have prevented that?

    I strongly suspect that this is Bush’s fault. Or the Japanese earthquake.

    Report this comment

    GhostOfJefferson  
  • Zipit
    Posted on November 15, 2012 at 3:31pm

    Show me someone who doesn’t think that we are right on their heels, and I’ll show you an Obama voter! Or Dick Trumka or……?

    Report this comment

    Zipit  
    • CatB
      Posted on November 15, 2012 at 3:44pm

      Agree … only those who are brain dead … don’t know.

      Report this comment

      CatB  
  • HKS
    Posted on November 15, 2012 at 3:30pm

    This is one sick situation. Politicians for their own gains have sold out people all over the world. Doing anything to stay in power. Making commitments that can’t ever be kept to make themselves look good and get re-elected, or appointed for the commies. Leadership greed is the root of world problems, so when are the people going to say enough. They have worn out the blame the rich guy excuse for no vision or leadership. WAKE UP WORLD, WE ALL HAVE THE SAME PROBLEM”.

    “Remember Benghazi”

    Report this comment

    HKS  
  • doomytram
    Posted on November 15, 2012 at 3:29pm

    Obozo supporters! Those non functioning brained drones that don’t understand what Obozo has inherited this time need to do something right now. Stick up your thumbs and point them at yourself and say, as Europe goes we go worse…. this guy did this….Now think about your beloved Obozo and understand that he caused this……He inherited this from himself Obozo drones.

    Report this comment

    doomytram  
  • Gonzo
    Posted on November 15, 2012 at 3:28pm

    Obama was looking for a good excuse, that should work. I mean if people are naive enough to believe that first time unemployment applications are up because of Sandy, this should work for our upcoming recession.

    Report this comment

    Gonzo  
    • progressiveslayer
      Posted on November 15, 2012 at 3:37pm

      We’re past recession G,we’re going for the big D and it’s coming right up.

      Report this comment

      progressiveslayer  
    • DadRocked
      Posted on November 15, 2012 at 3:53pm

      Slayer – You are correct, this so called ‘cliff’ is nothing but a future excuse for incompetance. Unfortunately, we may be down to a slim hope that ‘true’ business people replace the cabinet politicians. None had business 4yrs ago.
      “Trust God and Keep the Powder Dry”

      Report this comment

      DadRocked  
    • Gonzo
      Posted on November 15, 2012 at 4:12pm

      First recession and then depression Slayer. He’ll still be able to keep the sheep calm in the recession. When it slips into depression it’s all out anarchy.

      Report this comment

      Gonzo  
    • DadRocked
      Posted on November 15, 2012 at 4:23pm

      Dead on Gonzo

      Report this comment

      DadRocked  
  • copatriots
    Posted on November 15, 2012 at 3:28pm

    Why are we getting real news right after the election? Something feels strange about this….. Isn’t everything all peachy and perfect now that Big Zero was re-elected?

    Report this comment

     
  • Cavallo
    Posted on November 15, 2012 at 3:27pm

    HAHAHAHAHA… we’re next! Thanks bobo!!!

    Report this comment

    Cavallo  
  • GhostOfJefferson
    Posted on November 15, 2012 at 3:25pm

    I normally abhor pictures of cops hurting people, but that last pic of the cop kicking the hippy kid’s **** is kind of amusing.

    Wrong, but amusing. Yes, I’m bad. Sorry.

    Report this comment

    GhostOfJefferson  
    • Leslie Anne
      Posted on November 15, 2012 at 3:31pm

      That’s the best picture ever of “police brutality”.
      “Thank you, Sir…may I have another?” hahaha :)

      Report this comment

      Leslie Anne  
    • Zipit
      Posted on November 15, 2012 at 3:42pm

      Turns out Ghost, it’s the only job in Europe with any security!!! Riot Cop!

      Report this comment

      Zipit  
    • Lord_Frostwind
      Posted on November 15, 2012 at 3:53pm

      Cop uses “Riot Kick” on Hippie, It’s Super Effective!

      I like the silly and stoned hippies, they’re much nicer than the Molotov cocktail and black hoodie variant.

      Report this comment

      Lord_Frostwind  
1 2

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