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Berlin, Germany (AHN) – Signs of an economic contraction in Germany’s economy raised fears of a recession in Europe.

The news escalated concern that demand for oil might fall, causing oil futures prices to drop by as much as 1.1 percent. In addition, the euro weakened against the dollar.

Germany has long served as the engine for economic growth for the entire European Union. Therefore, news that the German economy likely shrank by 0.25 percent during the last three months of 2011 caused alarm and has observers worrying the European Union might slide back into a recession.

Official figures from the Federal Statistics Office show that the German economy only grew by 3 percent during 2011 and that was only achieved because of strong growth during the first half of the year.

Moreover, the Statistics Office said that most of the growth during the first six months was driven by domestic demand. The Statistics Office based the annual figure on an estimate of fourth quarter growth. However, the government won’t post the official data for the last quarter until Feb. 15.

In the meantime, Norbert Raeth from the Statistics Office announced at a press conference Wednesday that the economy likely shrank by “around a quarter of a percentage point” in the fourth quarter.

Although the 3 percent growth rate was down from the 3.7 percent in 2010, Germany still had a stronger figure than the United States or the EU.

According to the Organization for Economic Co-operation and Development (OECD), among its member nations Germany showed better growth than the expected growth rate of the following nations:

• U.S. 1.7 percent
• France 1.6 percent
• United Kingdom 0.9 percent
• Italy and Spain 0.7 percent

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London, England, United Kingdom (AHN) – To protest massive spending cuts by the British coalition government, unions are planning massive public strikes.

The Trades Union Congress has scheduled a strike for March 26, three days after the release of the budget. The TUC expects at least 1 million members to join the mass action and demonstrations. Union leaders met over the weekend to look into the possibility of coordinating strikes.

The strike threat made British Chancellor George Osborne issue a warning that the government could change the union law around strikes. However, Osborne added the amendment to the law is a last resort. Talks with the union would be the first option of the coalition government.

It is not only unions that are opposed to the austerity measures. International institutions have warned Britain that the budget cuts are apparently not effective based on the 0.5 percent economic contraction registered for the last quarter of 2010. Experts cautioned that a double-dip recession may loom over Britain.

Among the public events expected to be affected by the planned strikes are the royal wedding of Prince William and Kate Middleton in April. Also to be affected are the unveiling of the results of a pensions review carried out by Lord Hutton in the March budget.

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