European Comission president José Manuel Barroso has said that he believes the Eurozone is no longer in an existential crisis, saying that overall doubts are gone. The official noted alarmingly high levels of youth unemployment and that the economic situation is still worrying.
The Eurozone is mired in its longest ever recession, with figures from Brussels revealing yesterday that the single currency area began 2013 by sinking to a sixth consecutive quarter of contraction.
GDP was down 0.2 per cent in the first quarter of the year compared to the end of 2012, and economists expect the ailing currency bloc to experience yet another drop in the second quarter.
Yesterday’s data also showed that the Eurozone’s second largest economy – France – has fallen into another official recession. French GDP sank 0.2 per cent in the three months to March, continuing a 0.2 per cent decline in the previous quarter.
“The core is now as rotten as the periphery,” commented Hector McNeil, chief exec of City firm Boost ETP. “The distinction between the two is now all but meaningless, as even German growth has slipped to negligible levels and France’s economy is wilting faster than President Francois Hollande’s re-election prospects.”