This is the percentage by which Eurozone economies have contracted in the first three months of this year. Eurostat released the figure this week, which is higher than the 2% drop that analysts had predicted. German exports fell at a faster rate than imports, playing a significant role in the overall decline. In fact, the German economy dropped 3.8% in this first quarter of 2009, marking the biggest contraction to the German economy since reunification, almost two decades ago. Italy also fared quite poorly, it’s GDP dropping 2.4% - the greatest drop in the Italian economy in almost three decades. The French economy shrunk 1.2%, as predicted. Sharp declines are not unique to the Eurozone, however. In the wider EU, GDP also fell by 2.5%.

Image: www.flickr.com/ Boyan Yurukov

On Thursday of next week leaders from the world’s 19 largest national economies (including France, Germany, Italy, and the UK) plus the European Union will meet in London to discuss the economic crisis. They will seek to make three commitments, namely to stabilize financial markets, to strengthen the global financial and economic system, and to steer the global economy towards sustainable growth. Against these lofty ambitions, leaders such as US President Obama and British Prime Minister Brown have already downplayed the potential of this Summit to produce revolutionary change. As is typical for G20 meetings, tensions in London are already on the rise as plans for mass protests and demonstrations are being publicized.

Image: www.flickr.com/ Downing Street

This is the amount of the rescue loan that the EU and IMF have just agreed upon for Romania. The newest member state, which joined in 2007, along with Bulgaria, is the third EU member (after Hungary and Latvia) to need IMF and EU aid to help cope with the economic crisis. The IMF will contribute the largest sum, offering €13 billion, with the EU lending €5 billion, and the remaining money coming from the World Bank, the European Bank for Reconstruction and Development, and other multilateral sources. Various conditions will be attached to the loan, most of which are still being negotiated. It has already been established that the Romanian budget deficit in 2009 will need to be limited to 5.1% of GDP. The country, which is struggling with rising unemployment and falling tax receipts, will likely have to cut spending in the public sector in order to meet this target, prompting fears of social unrest and perhaps even the fall of the government, as was just seen in the Czech Republic.

Image: www.flickr.com/ GflaiG

On Friday March 20, EU leaders met to establish a common strategy ahead next month’s G20 Summit in London. EU member states will collectively advocate for tighter global regulation of financial markets, and a stricter approach to tax havens. EU members of the G20 will ask their fellow members to guarantee ‘appropriate regulation and oversight of all financial markets, products and participants that may present a systemic risk, without exception and regardless of their country of domicile.’ The head of stated decided to double loans available to eastern Europe to 50 billion euro and to support the IMF with additional 75 billion euro.

Image: []European Commission Audiovisual Service->http://ec.europa.eu/avservices/down...