EU: Economy Worse Than We Thought
Commission revises forecast downward
By Matt Cantor, Newser User
Posted May 3, 2013 8:41 AM CDT
Italian Prime Minister Enrico Letta, left, speaks as European Commission President Jose Manuel Barroso listens during a press conference at EU headquarters in Brussels on Thursday, May 2, 2013.   (AP Photo/Virginia Mayo)

(Newser) – The European Union's economic near-future is looking bleaker than expected: Its economy is poised to shrink 0.1% this year, the European Commission forecasts, instead of growing 0.1% as February predictions held. Things look even tougher for the eurozone, for which the commission foresees an 0.4% contraction rather than the earlier-forecast contraction of 0.3%, the Wall Street Journal reports. Officials blame continuing high unemployment and disappearing credit for homes and businesses.

The EU unemployment rate is likely to stay at 11.1% through 2014, they predict; the eurozone will see 12.2% unemployment this year and 12.1% next. And that's not just an economic issue, the report notes: "Intolerably high unemployment in vulnerable member states gives cause for a great concern as it endangers social cohesion." The situation differs wildly between countries, the Journal notes, with Austrian unemployment expected at 4.7% this year compared to Greece and Spain's 27%. Germany is the only eurozone country to see growth forecast this year, Reuters points out.

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Showing 3 of 36 comments
May 5, 2013 9:47 PM CDT
The EU suffers the same fate the US economy does. EU has the loser socialist nations like a mill stone around its neck dragging it down and the U. S. has millions of welfare parasites sucking the blood out of the economy with free handouts taken from what producers are left.
May 4, 2013 2:23 AM CDT
EU has always been a joke?
May 3, 2013 11:19 PM CDT
They should just admit this scheme is a failure and go back to fighting wars.