Eurozone's recovery is stuttering

EUROPE'S economic recovery ground to a near-halt in the last three months of 2009, with the 16-nation eurozone growing by only 0.1 per cent.

The figures were just a quarter of the growth that many analysts had predicted. They exposed the fragility of the area's climb out of recession and were largely blamed on the stagnation in the eurozone's powerhouse economy, Germany. But massive contractions for debt-laden Greece and Spain also dragged the overall figure down.

Yesterday, the euro fell back again against most major currencies – one euro is now worth about 86p or $1.35.

According to figures from the European Union statistics agency Eurostat, Germany turned in zero growth as consumption levels remained weak.

ING's Martin van Vliet said the weak growth raised worries that some southern economies hit by debt worries would have to adopt major fiscal measures this year to get their finances under control. "All in all, the paltry pace of fourth-quarter growth makes it crystal clear that the eurozone economy cannot yet stand on its own feet," he said. But he added it was premature to think the "soft patch" would persist.