Europe's economy is facing its worst recession in at least two decades, economists warned today, after figures showed that the region's economy contracted 1.5pc in the final three months of last year.
The Eurozone economy, whose biggest members are Germany and France, shrank 1.5pc in the fourth quarter compared with the third quarter - a steeper fall than economists had expected. Germany had the worst fall, with the economy shrinking the most since the country was reunified in 1990.
Many of Europe's other economies fared little better during a quarter in which the collapse of Lehman Brothers deepened the financial crisis and helped tip countries into recession. France shrank 1.2pc; Italy was was down 1.2pc and Spain weakened 1pc.Read more »