By Ambrose Evans-Pritchard @the Telegraph
Last Updated: 8:16PM GMT 23 Feb 2009
The eurozone’s financial system is under “severe strain” and risks setting off a downward spiral as the banking crisis and economic recession feed on each other, according to European Central Bank president Jean-Claude Trichet.
The ECB has been caught off guard by the ferocity of the recession, which is now ravaging Europe’s steel, car, aeronautics and chemical industries. The bank’s hard line has led to criticisms from trade unions and business leaders as the eurozone’s economy contracted at an annual rate of 6pc in the fourth quarter of 2008. Link to article
