"It looks like the European recession is going to be more shallow than ours was in the United States."

A West European recession, the UK included, now looks unavoidable.

"But it has been knocked sideways by the European recession"

Or is a European recession simply causing serious financial problems that will pass when recovery comes?

These gains have come despite a severe European recession.

They are now forecasting a European recession in 2012 and pointed out that this was "an environment in which banks have rarely outperformed".

Its earnings were hurt because it began the heavy investment just before the European recession of several years standing, Mr. Barton said.

They highlighted the political difficulties for governments seeking to maintain stable currency values at a time of deepening European recession.

But in the last year, mostly because of the American and European recessions, the Irish boom has collapsed.

In that environment, a European recession might stir nostalgia for good old marks and francs.