No risk of Europe recession - Almunia

EU finance chiefs today expressed confidence that Europe would not follow the United States into recession.

EU finance chiefs today expressed confidence that Europe would not follow the United States into recession.

EU economic and monetary affairs commissioner Joaquin Almunia stressed that the economic threat is the danger of a US recession rather than a global downturn.

"I hope that they [the United States] will be able to avoid a recession, and in this case I think calm will come back." Mr Almunia said amid rumours that the US Federal Reserve and perhaps other central banks will announce an emergency cut in interest rates.

Slovenian finance minister Andrej Bajuk, whose country holds the six-month EU presidency until June 30th, said: "We believe that with strong fundamentals Europe can cope."

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Euro group president Jean-Claude Juncker said he did not see a danger of global financial collapse, adding that Europeans and the euro zone are "better placed" than the US" to resist a downturn.