News / Europe

European Economic Growth Slows Markedly

France's President Nicolas Sarkozy welcomes German Chancellor Angela Merkel as she arrives for a meeting at the Elysee Palace in Paris, August 16, 2011
France's President Nicolas Sarkozy welcomes German Chancellor Angela Merkel as she arrives for a meeting at the Elysee Palace in Paris, August 16, 2011

Economic growth slowed markedly in the April-to-June period in the 17-nation European bloc that employs the common euro currency, stoking new fears of another global recession.

The European Union reported Tuesday that the economy in the euro region grew just two-tenths of one percent in the second quarter, a quarter of the rate in the first three months of the year. Europe's biggest economy, in Germany, only advanced a tenth of a percent.

Analysts say the continent's sagging growth prospects could make it more difficult for the region's debt-plagued governments to boost their economic prospects and avoid the need for further international bailouts like those already secured by Greece, Ireland and Portugal.

The diminished European growth is one more indication of a slowing global economy, with other governments throughout the world already reporting meager increases in recent months and predicting limited advances the remainder of the year. The U.S., with the world's largest economy, is also faced with slowed economic growth and a contentious political debate about how to reign in deficit spending.

Official word on Europe's economic slowdown came as the leaders of Germany and France prepared to meet in Paris on Tuesday to discuss the continent's debt crisis. German Chancellor Angela Merkel and French President Nicolas Sarkozy are expected to discuss ways to improve economic governance in an effort to convince investors that European governments are doing enough to contain debt worries in Italy, Spain and other countries. 

However, Merkel and Sarkozy say they do not plan to discuss proposals for collectively issued "Eurobonds" as part of the solution.

Some have called for the eurozone to adopt the jointly guaranteed bonds in order to ensure affordable financing for Europe's most financially distressed countries.

Critics of eurobonds worry that such a step would reduce the incentive for weaker eurozone economies like Greece, which has now been forced to secure two bailouts, to reform their economies, and that the shared interest burdens would punish financially sound countries.

The Merkel-Sarkozy meeting comes one day after the European Central Bank announced it spent almost $32 billion on government debt last week to prop up the bond markets of Spain and Italy.

With Europe continuing to seek measures to satisfy the financial markets, the European Central Bank has been taking a more forceful role in dealing with the crisis.

You May Like

Amnesty: EU Failing Migrants, Refugees

Rights group says migrants, refugees subject to detention, extortion, beatings More

From South Africa to Vietnam, Cyclists Deliver Message Against Rhino Horns

Appalled by poaching they saw firsthand, sisters embark on tour to raise awareness in countries where rhino horn products are in demand More

Uber Wants Johannesburg Police Protection

Request follows recent protests outside ride-hailing service's Johannesburg office More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Getting it Done Beyond a Nuclear Deali
X
July 07, 2015 12:02 PM
If a nuclear deal is reached between Iran and world powers in Vienna, it will be a highly technical road map to be used to monitor nuclear activity in Iran for years to come to ensure Tehran does not make nuclear weapons. Equally as complicated will be dismantling international sanctions that were originally intended to be ironclad. VOA’s Heather Murdock talks to experts about the key challenges any deal will present.
Video

Video Getting it Done Beyond a Nuclear Deal

If a nuclear deal is reached between Iran and world powers in Vienna, it will be a highly technical road map to be used to monitor nuclear activity in Iran for years to come to ensure Tehran does not make nuclear weapons. Equally as complicated will be dismantling international sanctions that were originally intended to be ironclad. VOA’s Heather Murdock talks to experts about the key challenges any deal will present.
Video

Video Rice Farmers Frustrated As Drought Grips Thailand

A severe drought in Thailand is limiting the growing season of the country’s important rice crop. Farmers are blaming the government for not doing more to protect a key export. Steve Sandford reports from Chiang Mai, Thailand.
Video

Video Making Music, Fleeing Bombs: New Film on Sudan’s Internal Refugees

In 2012, Sudanese filmmaker Hajooj Kuka went to make a documentary among civil war refugees in Sudan’s Blue Nile and Nuba Mountains region. What he found surprised him: music was helping to save people from bombing raids by their own government. VOA’s Carolyn Weaver has more.
Video

Video 'From This Day Forward' Reveals Difficult Journey of Transgender Parent

In her documentary, "From This Day Forward", filmmaker Sharon Shattuck reveals the personal journey of her transgender father, as he told his family that he always felt he was a woman inside and decided to live as one. VOA’s Penelope Poulou has more.
Video

Video Floodwaters Threaten Iconic American Home

The Farnsworth House in the Midwest State of Illinois is one of the most iconic homes in America. Thousands of tourists visit the site every year. Its location near a river inspired the design of the house, but, as VOA’s Kane Farabaugh reports, that very location is now threatening the existence of this National Historic Landmark.
Video

Video Olympics Construction Scars Sacred Korean Mountain

Environmentalists in South Korea are protesting a Winter Olympics construction project to build a ski slope through a 500-year-old protected forest. Brian Padden reports that although there is strong national support for hosting the 2018 Pyeongchang Winter Olympics, there are growing public concerns over the costs and possible ecological damage at the revered mountain.
Video

Video Xenophobia Victims in South Africa Flee Violence, Then Return

Many Malawians fled South Africa early this year after xenophobic attacks on African immigrants. But many quickly found life was no better at home and have returned to South Africa – often illegally and without jobs, and facing the tough task of having to start over. Lameck Masina and Anita Powell file from Johannesburg.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.

VOA Blogs