Tuesday, August 30, 2011

EU Chief warns over looming economic threat

Recent turmoil on financial markets is threatening economic recovery in the European Union, the bloc's leading economic official said today.

Recent turmoil on financial markets is threatening economic recovery in the European Union, the bloc's leading economic official said today.

The warning from EU Monetary Affairs Commissioner Olli Rehn came after a turbulent summer for markets across the globe, as investors worried about a potential new recession in the United States, the eurozone's ability to resolve its debt crisis and the health of European banks.

"The financial markets and the real economy move now more in synchrony, which makes me seriously concerned about continued financial turbulence spilling over to and potentially harming the recovery of the real economy," Mr Rehn told European lawmakers. more