European leaders warn of difficult 2012

European leaders warn of difficult 2012

European leaders delivered somber New Year’s messages to their citizens Saturday.

As the troubled euro celebrates its 10th birthday, European leaders have used their New Year’s addresses to stress the need for closer union to tackle the eurozone crisis.

European leaders have warned of a difficult year ahead, as many economists predict recession in 2012.

German Chancellor Angela Merkel said Europe was experiencing its “most severe test in decades” but that Europe was growing closer in the debt crisis.

France’s President Sarkozy said the crisis was not finished, while Italy’s president called for more sacrifices.

Growth in Europe has stalled as the debt crisis has forced governments to slash spending.

“Will 2012 be the end of the euro currency? My answer is I don’t think so,” IMF chief Christine Lagarde told reporters after meeting the South African finance minister.

The euro will not “vanish” this year, but problems within the eurozone will slow down the global economy, with the International Monetary Fund set to lower its growth predictions in an upcoming report, its chief Christine Lagarde said Friday (6 January).

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