5th Dec 2023

European markets tumble amid fears on global growth

  • Weaker-than-expected employment and manufacturing in the US sparked the market turmoil (Photo: Travel Aficionado)

European markets had their biggest fall since March 2009 on Thursday (18 August) amid concerns over the state of the global economy and the ability of the eurozone to deal with its debt crisis.

London's FTSE 100 index ended the day down 4.5 percent while Germany's DAX lost 5.8 percent. US stocks were also down substantially, with the Dow Jones 3.68 percent lower at the close of day.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The turmoil came as figures in the US showed no improvement in the employment rate and worsening manufacturing conditions in the East Coast region.

A Morgan Stanley report warning of a global economic slow down and possible recession in the US and the EU contributed to the market fears as did an article in the Wall Street Journal claiming that US regulators were examining US exposure to European banks.

Politicians on both sides of the Atlantic sought to play down fears.

"I don’t think we're in danger of another recession, but we are in danger of not having a recovery that is fast enough to deal with a genuine unemployment crisis for a whole lot of folks out there," US president Barack Obama told CBS.

"And that's why we need to be doing more."

European Council president Herman Van Rompuy on Thursday said: "We do not ... foresee negative economic growth, a recession [in Europe]."

Markets have been sceptical since a highly-anticipated meeting between eurozone heavyweights France and Germany on Tuesday (16 August) failed to deliver immediate solutions to the eurozone debt crisis, which has recently threatened to engulf Spain and Italy.

In addition, markets have also been reacting negatively to the news that Berlin and Paris want to revive the idea of a financial transaction tax and that it should apply to the whole of the EU.

World markets plunge amid worsening euro-crisis

Stock markets plunged on Thursday to levels last seen in 2008 at the height of the financial crisis, amid worsening concerns about the US economy and Europe's capacity to overcome their debt problems.

EU public procurement reform 'ineffective', find auditors

The EU Commission reformed procurement directives to make bids more attractive (and competitive), but the reform has failed, say auditors. Procedures now take longer, and the number of direct awards and individual tenders has increased over the past decade.


What are the big money debates at COP28 UN climate summit?

The most critical UN climate conference (COP28) ever will run from Thursday to mid-December — with talks on climate commitments and climate finance expected to determine the success of this year's summit.

Latest News

  1. EU nears deal to fingerprint six year-old asylum seekers
  2. Orbán's Ukraine-veto threat escalates ahead of EU summit
  3. Can Green Deal survive the 2024 European election?
  4. Protecting workers' rights throughout the AI revolution
  5. Russia, the West, and the geopolitical 'touch-move rule'
  6. Afghanistan is a 'forever emergency,' says UN head
  7. EU public procurement reform 'ineffective', find auditors
  8. COP28 warned over-relying on carbon capture costs €27 trillion

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Join EUobserver

Support quality EU news

Join us