'EU Faces Catastrophe with Pain & Suffering Equal to WWII'

The Red Cross says Europe is heading into a long period of mass unemployment, inequality and social despair. The organization believes austerity policies are to blame according to a report obtained by Britain's Guardian newspaper. It forecasts bleak times ahead for about 120 million Europeans living in, or close to, poverty. The report says those out of work for more than a year amount to 11 million. For more thoughts on Europe's sinking economy RT joined by Chris Clarke, a senior lecturer at Nottingham Business School.

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Austerity Pushing Europe into Social and Economic Decline, Says Red Cross

A homeless beggar in Athens

THE GUARDIAN: Critique of response to EU debt crisis highlights unemployment, widening poverty gap, and growing risk of social unrest

Europe is sinking into a protracted period of deepening poverty, mass unemployment, social exclusion, greater inequality, and collective despair as a result of austerity policies adopted in response to the debt and currency crisis of the past four years, according to an extensive study being published on Thursday.

"Whilst other continents successfully reduce poverty, Europe adds to it," says the 68-page report from the International Federation of Red Cross and Red Crescent Societies. "The long-term consequences of this crisis have yet to surface. The problems caused will be felt for decades even if the economy turns for the better in the near future … We wonder if we as a continent really understand what has hit us."

The damning critique, obtained exclusively by the Guardian, of the policy response to the debt crisis that surfaced in Greece in late 2009 and raised fundamental questions about the viability of the euro single currency, foresees extremely gloomy prospects for tens of millions of Europeans. » | Ian Traynor in Brussels | Thursday, October 10, 2013