Euro zone finance ministers have been meeting in Brussels to look at how to apply the European Commission’s 200-billion euro plan to boost their recession hit economies. The EU proposed that member states spend an extra 1.2 percent of GDP from their budgets in order to aid investment and consumer demand in the hope of warding off the downturn.
Meanwhile, factories across Europe put in their worst performance during November since private survey records began.
The poor showing was accompanied by data that shows that inflationary pressure is on the wane, removing any doubts that both the European Central Bank and the Bank of England will cut interest rates on Thursday. The only talk now is over the size of the cuts, with economists agreed that central banks will opt for larger cuts than the 50 base points previously mentioned.
Euro zone ministers debate cash injection