Every euro country in recession
Thanks in part to inflation, oil prices and dried-up credit, all countries using the Euro have been hit with a recession. Kyle James reports it may be a less brutal but perhaps longer recession than the U.S.
The euro. (iStockphoto)
More on International, Europe, America's Financial Crisis
TEXT OF STORY
Steve Chiotakis: The E.U. reports that all the countries that use the Euro currency are collectively, collectively in recession. Kyle James has the story from Berlin.
Kyle James: It's a milestone of sorts, but not the kind anyone wants. For the first time since the currency was introduced in 1999, the Eurozone has entered recession. The economy has been hit from various sides. Inflation has skyrocketed, oil prices and the euro hit highs over the summer, and credit has dried up.
Brussels-based analyst Nicolas Veron says many thought at one time, the E.U. might avoid a U.S.-style downturn, but that's not what's happened.
Nicolas Veron: In a way, European economies tend to be slower to adjust, both on the downside and the upside. So I would expect a recession that will perhaps come less brutally in Europe than it is coming in the U.S., but may last a bit longer.
He says the downturn will like spur European leaders to look for a common policy response. Up to now, governments have acted on the national level. But since Eurozone economies are so tightly linked, he says coordinated action is needed.
In Berlin, I'm Kyle James for Marketplace.
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