EU economy to shrink again in 2013, already record unemployment will rise, member nations risk fines from Brussels for overspending-AFP, BBC

.
2/22/13, "EU predicts recession, record dole queues in 2013," AFP, Thomson

"Economic output across the 17-state currency area -- home to about 340 million people and a global rival to the United States, Japan and emerging giants -- is set to shrink by 0.3 percent this year after a 0.6-percent contraction last year, the European Commission said.

Millions more people are set therefore to lose their jobs, with already record unemployment expected to rise markedly right into 2014.

National governments face a tricky balancing act getting their finances in order and meeting EU spending thresholds to avoid fines in what Brussels sees as an undesirable consequence that would further worsen Europe's overall outlook."...

========================== 

 2/22/13, "Eurozone downturn and deficits to persist, Commission says," BBC

"The eurozone recession will persist into 2013, the European Commission has conceded in its latest forecast.

Governments face an uphill battle to rein in their overspending, with Spain, France and Portugal all failing to cut their deficits to agreed targets.

Spain's deficit, at 10.2% of GDP in 2012, was well above its 6.3% target, and would stay above target into 2014.

The eurozone economy would shrink 0.3% in 2013, the Commission said, making the governments' task even harder.

Previously, the Commission had expected the 17 economies in the eurozone to collectively enjoy 0.1% positive growth this year. In 2012 the economy is estimated to have shrunk 0.6%."...