Europe faces threat from market slide

The European economy's close ties to emerging markets are turning from a blessing to a curse.

Already skirting recession, the 15 euro nations face greater pain as economies which gave them an edge over the US and Japan falter. Trade partners to the east, that buy about a third of the region's exports, are faltering as their banks weaken and currencies slide. Meanwhile, the halving of oil prices is slowing demand from the Middle East.