‘Full-blown recession’ unless ECB changes come

THE EU and Ireland are heading into a fresh recession next year unless the European Central Bank initiates a number of actions — including dropping interest rates to 0.5% — NCB stockbrokers economist Brian Devine warned yesterday.

“The growth picture in the euro area has declined rapidly, with euro area PMIs pointing to recession in Q4 2011,” he said.

“Unless the ECB acts there will be a full-blown annual recession in the euro area in 2012, with time running out to prevent this from occurring.”