EURO ECONOMY IN "DANGEROUS TERRITORY" - REPORT.
The European Commission has said the eurozone's economy is in "dangerous territory" with the sovereign debt crisis entering a new "contagious" phase that threatens to cut off market access for solvent governments. "Deep losses of confidence and extreme risk aversion are driving up yields, ipso facto threatening the sustainability of previously manageable debt burdens," said Marco Buti, director-general of the EU's Economic and Financial Affairs Directorate, in the latest quarterly report on the eurozone, published on 13 December. Predicting low growth of 0.5% this year and 1.3% in 2012, the report says that the only way to reverse the trend is to increase workers' productivity by promoting further education, investing in research and innovation and lifting of restrictions on setting up businesses and hiring workers. aThe report is available at ec.europa.eu/economy_finance/publications/qr_euro_area/2011/qrea4_en.htm
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|Date:||Dec 14, 2011|
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