German Halt, Italian Reverse Hit EU's recovery


Europe's post-recession recovery hit a roadblock on Friday as German economic growth unexpectedly halted and Italy went into reverse in the final quarter of 2009, knocking total euro zone GDP growth almost flat.

The weak data comes at a bad time for the single currency bloc as governments struggle to sort out Greece's debt crisis and contain financial market fears that are driving the euro lower and government bond yields higher.

Gross domestic product in the 16-country euro currency zone came in just 0.1 percent higher than the previous quarter, below the 0.3 percent forecast and well short of the 0.4 rise that lifted it from recession in the third quarter.

EU's GDP dropped 4.0 percent in 2009 as a whole.

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