Barroso says Europe will avoid return to recession

Jose Manuel Barroso: "We don't anticipate a recession in Europe"

Europe will not slide back into recession, and the euro remains "strong and resilient", the president of the European Commission has said.

Jose Manuel Barroso added that the Commission and national governments were "doing all it takes" to tackle the debt problems in the eurozone area.

His comments came after rating agency Standard & Poor's (S&P) said last week that the risk of a double dip recession in the eurozone had grown.

Yet S&P said that it should be avoided.

'Tighter regulation'

Mr Barroso was speaking during an official visit to Australia.

He said: "We don't anticipate a recession in Europe.

"The latest forecast by the European Commission shows there will be growth, modest growth it is true."

Mr Barroso added: "I want to be very clear here - the European Union and euro are strong and resilient.

"We are doing all it takes, from tackling the underlying budget problems, to strengthening the governance of the eurozone, from tighter financial regulation to improving our overall preparedness."

S&P now expects the economy across the 17 nations that share the euro to expand 1.7% this year, down from its previous forecast of 1.9%.

Weak figures

Data last week showed that manufacturing activity in the eurozone shrank in August for the first time in two years.

The Markit Manufacturing PMI measure for the eurozone fell to 49 from 50.4 in July. A reading below 50 indicates contraction in the sector.

Markit also said that the service sector in the eurozone grew only modestly.

Its service sector PMI measure fell to a 23-month low of 51.5 in August from 51.6 in July.

Official data released in the middle of August showed that eurozone economic growth slowed to 0.2% in April to June, from 0.8% in the first three months of the year.

More on This Story

Global Economy

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Two sphinxes guarding the entrance to the tombTomb mystery

    Secrets of ancient burial site keep Greeks guessing


  • The chequeBig gamble

    How does it feel to bet £900,000 on the Scottish referendum?


  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos


  • Deepika PadukoneBeauty and a tweet

    Bollywood cleavage row shows India's 'crass' side


  • Relief sculpture of MithrasRoman puzzle

    How to put London's mysterious underground temple back together


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.