The European Commission says that although a banking meltdown may
have been averted, recession risks are real

* German engineers strike for more pay
* Commerzbank taps Berlin for cash


Trillions of dollars in bank bailouts may have averted financial meltdown,
but European Commissioner for Monetary Affairs, Joaquin Almunia says the
economic outlook remains grim.

EUROPEAN COMMISSIONER FOR MONETARY AFFAIRS JOAQUIN
ALMUNIA SAYING:
"The horizon that this forecast offers is dark as today's
weather in Brussels. Recession is a real risk."

Euro zone manufacturing activity sank to a record low in October and the
Commission said it expected GDP to decline in the third quarter of 2008. But
Almunia said world growth was expected to rise gradually during 2010.

Tens of thousands of workers in Germany's engineering sector staged
temporary stoppages demanding an eight percent pay rise - the biggest wage
hike in 16 years.

The stoppages at plants across Germany disrupted production at companies
including Daimler, Siemens, MAN and Ford with further stoppages planned on
Tuesday.

Commerzbank, became Germany's first commercial bank to turn to Berlin for
capital. It asked for 10.5 billion US dollars from the German government's
rescue package to help it cope with the current financial crisis. 10.5 billion
is more than Commerzbank's stock market value - though it does not make the
German government a shareholder.

Commerzbank shares were one of the biggest gainers leading European indices
higher, but the FTSEurofirst 300 turned down afternoon trade with oil under
$66 per barrel.

And Ryanair's profits may have slumped 47 percent - but this has not
stopped them planning 13 US dollars flights between the UK and US. The budget
airline wants to offer the low economy class prices by buying up struggling
rivals' planes. Business class seats will cost the same as its competitors and
they hope to be offering the bargain flights by the end of next year.

Stefanie McIntyre, Reuters.