From zero in the month of May, it dropped down to a miserly -0.1 percent in June. A prediction was made indicating a slump of around minus 0.2 percent by The European analyst office.

With the current scenario the economy is expected to fall into the negative territory for a few more months before it regains stability.
With large scale unemployment and rising prices of commodities coupled with the after effects of the global recession analysts predict that the slump will decelerate the growth of the economy considerably.

ECB has warned of a possible deflation threat in the Euro zone as the year 2009 unfolds. It has showcased reports citing inflation below 2 per cent mark.

The European Union has reported numerous bankruptcies and is undertaking loans and bailouts that will help improve the economy and avert major disaster in terms of the public, jobs and services rendered to them.