S&P Says Rising Euro Recession Risk Requires Government Action
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The increasing risk of a euro area recession heightens the need for the region’s governments to move quickly to implement last week’s agreement to unify regional bank regulation and give support to Spanish banks, Standard & Poor’s chief European economist said.
Deleveraging is “pushing towards recession and stagnation and the risk of a double dip has increased,” S&P’s Jean-Michel Six said in an interview in Aix-en-Provence, France. “Most economies are either in recession again -- such as Spain and Italy -- or very close to recession -- such as France and even Germany.”