Standard & Poor's believes there is a 40 per cent chance of a recession in the eurozone, whose economy could contract by up to 1.5 per cent this year, dpa quoted the US credit ratings agency as saying on Saturday. "We are now forecasting a recession with a 40 per cent probability for this year," said S&P credit analyst Moritz Kraemer. "That could lead to a eurozone contraction of around 1.5 per cent." The agency warned eurozone countries that their efforts to fight the debt crisis was too focused on reducing debt. S&P on Friday downgraded the debt ratings of nine European countries, including France and Austria, who were stripped of their prized top-notch triple A ratings. The agency said a fiscal unity pact agreed at a European Union summit last month to tighten budgetary rules did not fully address the eurozone's financial problems.
