Europe on the Downslide

Well, it’s official: The European economy is in gloomier territory than previously believed. EU Economic and Monetary Affairs Commissioner Joaquin Almunia announced Monday that member economies will shrink by 4% this year, likely taking a further plunge of 0.1% in 2010.

Meanwhile, unemployment is expected to jump to 10.9% in 2010, with some countries hit harder than others: Germany, Ireland and Latvia, good luck y’all!

BBC:

“The European economy is in the midst of its deepest and most widespread recession in the post-war era,” said E.U. Economic and Monetary Affairs Commissioner, Joaquin Almunia.

“But the ambitious measures taken by governments and central banks in these exceptional circumstances are expected to put a floor under the fall in economic activity this year and enable a recovery next year.”

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AP photo / Yves Logghe

EU Economic and Monetary Affairs Commissioner Joaquin Almunia delivers his gloomy forecast on Monday.