EU Commission expects deep recession

According to the EU Commission, the global crisis will lead to a deep economic recession in Europe in the year 2009. However, the Commission think that thanks to measures taken by several member states in order to enliven the economy the economic situation may well improve in the second half of 2009. The European GDP is predicted to shrink by 1.9% in the year 2009. German GDP is expected to fall by 2.3%. For 2010 the economy is forecast to grow by 0.4% in Europe and by 0.7% in Germany.

According to the Commission, a smaller GDP will lead to more unemployment in Europe. About 3.5 million jobs would be cut in Europe and unemployment grow to 9.3%. It is expected to grow even further to 10% by the year 2010. GERMAN