Euro area may enter into recession in the first half of next year, which will lead to a growth of only 0.1% in 2012, warned audit company Ernst & Young.
The Company has estimated and that it is unlikely that the euro area unemployment rate falls below 10% by 2015.

Meanwhile, Greece - the country with the biggest debts in Europe - has announced that 2011 could see the worst recession in history. Greek Prime Minister Lucas Papademos warned Wednesday that this year his country's economic contraction will be over 5.5%, as is expected.
Greek economy shrank by 4.5% in 2010, when he received his first rescue package from the EU and the IMF.

Last week, 26 of the 27 European Union members supported the stricter budgetary rules. Only Great Britain opposed.

But many fear that the agreement will not be enough to prevent new countries needing rescue packages.
Wednesday, the euro fell below $ 1.30 for the first time after 12 January.

"The reforms decided at a summit in December 9th is a step in the right direction and the answer seems to be slightly positive," says Ernst & Young. "But investors are still encouraged about the commitment and capacity of the euro area governments to quickly implement reforms", said the company, which estimates that eurozone growth will reach between 1.5% and 2% in 2013.

"Uncertainties surrounding the euro area can only continue to decline enthusiasm for European companies to long-term investment and recruitment decisions," said Mark Otty, Ernst & Young partner for Europe, Middle East, India and Africa.