As unemployment rises, another quarter of recession may occur in the European economy. On Friday, February 21 some European nations forecasted missing their government deficit targets despite many rounds of spending cuts. The region’s economy is expected to grow later this year, but the 17 country union has spent the last three years in the slumps.
The Obama administration worries how the European Union’s declining economy will affect the United States. President Obama hopes that talks of free-trade with the European Union will promote American and European trade. A key question is whether such an agreement is mainly focused on trade or on developing a political counterbalance to China.