Spain falls into recession as EU gears up for crisis talks
Spain tumbled into recession and European stock markets fell on Thursday as Greece installed a crisis government to tackle its crippling debt and top EU leaders prepared for crisis talks.business Updated: May 17, 2012 21:16 IST
Spain tumbled into recession and European stock markets fell on Thursday as Greece installed a crisis government to tackle its crippling debt and top EU leaders prepared for crisis talks.
European leaders were to hold a video conference later in the day, initially to discuss an upcoming G8 meeting of industrialised countries but also to consider the situation in Greece and elsewhere across the 17-nation euro zone.
In Athens, a caretaker government took office to organise the country’s second elections in six weeks after an inconclusive May 6 vote jolted the eurozone.
British premier David Cameron was to confer via videoconference with German Chancellor Angela Merkel, new French President Francois Hollande, Italian Prime Minister Mario Monti and top EU officials.
The meeting was originally called to discuss a G8 meeting in the United States at the weekend, but Cameron’s office said the euro zone was likely to come up as well.
The national statistics institute INE in Madrid said that the fourth biggest euro zone economy had contracted by 0.3% in the first quarter of 2012.
That was the same decline seen in the last three months of 2011 and confirmed that Spain was officially in recession, defined as two straight quarters of economic contraction.