Telegraph
José Manuel Barroso’s warning came as stock markets plunged around the world amid growing fears of another global recession.
Mr Barroso called for an emergency strengthening of Europe’s bail-out mechanism. He said he had “deep concerns” about the faltering Spanish and Italian economies.
The stark message was delivered as the FTSE 100 suffered a 3.43pc fall, its biggest since the height of the banking crisis in March 2009.
In the past five days, investors have lost a total of £125bn.
The doubts spread to America as the Dow Jones Industrial Average fell 4.3pc to its lowest point since December 1 2008.
In other developments:
* The City watchdog asked British banks to reveal how much exposure they had to other European member states, including Belgium
* Trading in the shares of Lloyds and Barclays had to be suspended because their values fell so much
* BNY Mellon, one of the largest banks in America, said it would start charging some customers to deposit money as investors hoarded cash
* Switzerland and Japan were forced to cut interest rates to dampen demand for their currency from investors seeking a “safe haven”
Mr Barroso’s letter to European Council members came a fortnight after European leaders were congratulating themselves for bringing the Greek economy back from the brink with a £96bn bail-out. [...]
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