Barroso: EU will avoid slipping into recession

PanARMENIAN.Net - The European Union will avoid slipping into recession and is doing all it can to tackle the region's debt problems, a top official said Monday, September 5.

European Commission President Jose Manuel Barroso, who is in Australia on his way to a meeting of South Pacific states, said the 27-nation EU and the euro common currency are resilient and the region will continue to grow, albeit modestly.

"We don't anticipate a recession in Europe," Barroso told reporters after a meeting with Australian Prime Minister Julia Gillard and senior ministers. "The latest forecast by the European Commission shows that there will be growth - modest growth, it's true."

"The European Union and euro are strong and resilient and we are doing all it takes from tackling the underlying budget problems to strengthening the governance of the euro zone, from tighter financial regulation to improving our overall competitiveness," he said, the Associated Press reported.

World business leaders and finance experts gathered in Italy for the annual Ambrosetti Forum at the weekend offered a downbeat assessment of the global economy - with several predicting another recession due to a calamitous cocktail of sluggish growth, eurozone dysfunction, and financial market volatility.