EU into recession in the euro zone as a whole to save the city of difficult labor program

The European Commission (European Commission) announced Monday the autumn economic forecasts even more firmly on the European market to determine the economic outlook. The report showed that euro-zone countries have significant signs of a recession at the same time the European Union next year's economic growth will be stalled. However, despite the worsening economic situation, the European Union as a whole has repeatedly put out a program of the city of difficult labor.

To confirm the trend of negative growth

The report forecast that the euro-zone economy in the second quarter from the ring than the emergence of a negative growth of 0.2 percent in the third quarter and fourth quarter will appear a negative growth of 0.1 percent. Two consecutive quarter of negative economic growth, which means that the "economic recession" to set up a technical.

The report shows that in 2008, economic growth in Europe from 2007's 2.9 percent drop sharply by 1.4% in 2009, the EU economy would be stagnant, and only 0.2 percent growth forecast. In 2010, economic recovery is expected, the growth rate might be 1.1%. 15 countries in the euro zone this year's annual economic growth rate is estimated to be 1.2 percent, down from the spring forecast of 1.7 percent; next two years after the euro-zone economic growth will be 0.1 percent and 0.9 percent.

The report also predicted that in 2009 the euro-zone economic powers Germany, France and Italy will see zero growth, Spain will be a negative growth of 0.2 percent. Non-euro-zone economic power of Britain's economy will see negative growth of 1%.

On the other hand, the labor market and public finances will be worse. The report showed that the unemployment rate in the euro zone this year from 7.6% to 8.4% next year and 8.7 percent in 2010; the European Union, the unemployment rate from 7.0 percent this year rose to 7.8 percent next year and 8.1 percent in 2010.

CASS Institute of World Economics and Politics Research Institute of International Finance Zhang Bin, deputy director of the view that the European economic outlook is not optimistic, despite the crisis broke out in Europe compared with action in a timely manner, but the impact in Europe than the United States is not small. Compared with the United States, the European Union market flexibility than the United States, the United States out of the crisis may be far faster than the speed of Europe.

"We need from the EU level to coordinate action to support economic development." EU Economic and Monetary Affairs Joaquin Almunia Chairman of the Committee (Joaquin Almunia) data released at the same time, the EU called on all countries to take concerted action to improve the economy, "Everyone National action is necessary, but if the countries can coordinate their actions, they share the same objectives as well as to discuss the case, such a measure before more effective. "

Euro Group President, the first-Claude Juncker of Luxembourg (Jean-Claude Juncker) said, "We support for a number of specific joint measures to be taken. But the best action at the level of the Group of the euro launch."

Argue "concerted action"

But in the evening of Nov. 3 in the euro zone held 15 monthly meetings, a European Union-wide economic rescue plan has met with opposition from some countries.

Dutch Finance Minister Wouter Bos said publicly, "I do not think the new EU-wide measures are necessary, economic policy is at the heart of national policy. Countries to coordinate economic policy should abide by" the EU stability and growth pact "in the budget rules."

In fact, as the crisis deepened, the European countries to take concerted action on a consensus has been reached, but all countries will accept the measures did not, since birth.

Prior to this, some EU politicians have called for a fiscal stimulus package to help the EU to deal with the economic slowdown. In which French President Sarkozy is the most active participants and advocates. September, Sarkozy proposed by the European Union was to establish a national unity fund to rescue the market, and then in the October 21 proposed the establishment of the Government in the euro zone economy, and called upon France to set up similar funds of national sovereignty.

However, it was Germany's strong opposition. The European Commission President Jose Manuel Barroso is also worried about Sarkozy's rescue package, which may adversely affect the independence of the European Central Bank.

Zhang Bin said, "First of all, the European Union by the impact of different countries, different level, if the European Union to take a unified course of action, from the inevitable trade-offs to their respective positions, the program encountered the same resistance is huge; followed by On the countries, every country across the political struggle between the powerful group, which also delayed the reunification of the countries in the program through. Although the use of a unified currency, fiscal policy is independent. "

November 3, Chairman of the Group of the euro, Juncker also denied the EU level, the need for a coherent plan, "we are facing a serious economic situation in the euro area does not need an overall economic stimulus program, it is imperative that all countries To take targeted measures for the short-term growth in demand for public support. "

Dutch Finance Minister Bos confidence to vote for the European Central Bank, "We have a strong European Central Bank (EBC), it is our joint operation of the most perfect body."

However, the European Central Bank has also previously as a result of slow response to financial crisis and the war have been criticized. Last month, in response to the global financial crisis, the central bank to cut interest rates a joint operation, the European Central Bank has lowered interest rates by half a percentage point to 3.75 percent.

The bad economic situation may force the European Central Bank to cut interest rates again. Four this week, the ECB's Governing Council will hold a meeting that interest. The market is expected to again cut interest rates half a percentage point.