Euro woes continuing

The Eurozone has returned to recession as the region's debt crisis continues to hurt demand.

The economy of the 17-nation bloc contracted by 0.1% between July and September, after shrinking 0.2% in the previous three months,.

The Eurozone was last in recession in 2009, when the economy contracted for five consecutive quarters.

The news follows on from millions of workers in Europe holding a day of action against austerity measures.

Protests in Spain, Italy and Portugal were marred by violence.

Countries such as Greece and the Republic of Ireland that have been bailed out by international lenders continue to see their economies shrink. Meanwhile larger economies such as Spain have imposed spending cuts in an attempt to avoid having to ask for a bailout.

The austerity measures in many countries - mostly in southern Europe - have combined tax rises with cuts in salaries, pensions, benefits and social services.

"We are now getting into a double dip recession which is entirely self-made," said Paul de Grauwe, a professor at the London School of Economics. "It is a result of excessive austerity in southern countries and unwillingness in the north to do anything else.”

Apart from the social cost the spectre of unemployment represents a major threat to economic recovery within the EU together with all the global implications it brings.