Dire day for Europe as Spain's jobless blasts through 3m and German industry goes into "free-fall" .
German exports and industrial orders have both plunged at the steepest rate since modern records began.
Joaquin Almunia, the European economics commissioner, warned that the picture would turn "dramatically worse" this year.
Spain lost almost 140,000 jobs in December 08, pushing unemployment to 3.1m or 13.4pc.
"We are in an unprecedented situation, and 2009 is going to be very difficult," Labour Sec Rojo said.
In Germany exports plummeted 10.6pc in November 08, as demand for machinery slumps in China, Russia, the Mid-East, and equally important as car sales crash in Italy, Spain, and Britain.
The country's trade surplus has shrivelled by a third in one month.
"Industry is in free-fall," said Dirk Schumacher, from Goldman Sachs. Germany's industrial orders have plummeted 27pc year-on-year, heralding a drastic economic contraction this year.
Berlin is now preparing the part-nationalisation of Commerzbank by taking a 25pc stake in exchange for a €10bn infusion of capital, helping to boost the bank's capital ratio as it digests Dresdner Bank. Commerzbank shares fell 14pc. France is also drawing up plans for a fresh €10.5bn capital injection for its banks.
Jacques Cailloux, from the Royal Bank of Scotland, said the pace of contraction in Europe is now disturbingly close to levels seen in the Great Depression. The eurozone bloc shrank by 3pc in 1930, 5pc in 1931, and 4pc in 1932.
By this count, 2009 could easily match 1930. The latest data points to 3pc contraction rate since late last year, with no improvement in sight. "Even the worst case scenarios people talked about now look too optimistic.
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/4177664/Europes-economy-contracts-at-rates-not-seen-since-1930s.html
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