Geo Focus: Pain Across the Pond

Things aren't much better in Europe. In fact, they might be worse

Auto plants closing, jobs eliminated, mom and pop stores shuttered after decades in business—doesn't this all sound familiar? Except it isn't happening in Detroit, New York or in Anytown, USA. It's happening all across Europe where business and government leaders say it could get worse before it gets better.

Even though European banks and businesses have managed to avoid a similar sub-prime fiasco, the continent has slipped into its own recession. All across the European Union, unemployment is approaching 8 percent, and the International Monetary Fund predicts a 2 percent decline for its overall economy, even more than the 1.6 percent predicted for the U.S.