Europe's Economic Prospects For 2012

A Pétroplus refinery in Petit-Couronne, France

Looking ahead to the next 12 months, European business leaders are hoping the current economic slowdown will be more manageable than the crisis four years ago. Fear of a worst-case scenario, however, is part of everyone's calculation.

Following is an excerpt from an article published in worldcrunch

On paper, businesses have much to worry about. France has already entered a recession, the rest of the world seems to be slowing down, the euro zone is on the verge of imploding, and the multiplicity of elections taking place in 2012 is likely to paralyze public action in several countries. Seldom have the drivers of businesses had to find their way in so thick a fog: visibility is almost nil, obstacles are everywhere and a collision is bound to occur. In the end, the only unknown variable is the violence of the inevitable accident.
Companies are cautiously gearing up for the crash. For several months now, they have opted for a freeze on hiring, delayed investments, and put major acquisition projects on hold. Companies are now sporting their "crisis management" cap. But like a self-fulfilling prophecy, this cautiousness from our captains of capitalism may well have a morose impact on an already grim situation......In 2008, companies had to face failing money markets; let’s hope that in 2012 they won't have to deal with the disappearance of a currency. Many would not be able to survive the blow.