Euro Area in Recession for Second Time in Four Years: Economy. The euro-area economy succumbed to a recession for the
second time in four years as governments imposed tougher budget cuts
and leaders struggled to contain the debt crisis that broke out in
October 2009. Gross domestic product in the
17-nation bloc slipped 0.1 percent in the third quarter after a 0.2
percent decline in the previous three months, the European Union’s statistics office in Luxembourg said today. The result matched the
median forecast in a Bloomberg News survey of 44 economists, as
unexpected strength in Germany and France was outweighed by
contractions elsewhere.
Europe’s economic malaise
is deepening as governments across the region impose budget cuts to
narrow their fiscal deficits. Spain and Cyprus this year joined the list
of countries seeking external aid, following Greece, Portugal and
Ireland. Unions across the region have held protests against
austerity measures.