Europe got more bad news on Thursday, as the European Union’s executive arm sharply downgraded growth forecasts for the region. This has major implications for a continent buffeted by the financial and political crises in Italy and Greece. The new figures predict economic growth across the European Union of only 0.6 percent next year – and just 0.5 percent in the 17-nation eurozone. That is substantially less than the 1.8 percent growth predictions earlier this year for the euro currency area. European Economic and Monetary Affairs Commissioner Olli Rehn delivered a sober assessment of the region’s problems at a press conference in Brussels. “GDP is now forecast to stagnate around the turn of this year, with some member states, in fact, experiencing a contraction,” said Rehn. Rehn called on five EU members – Belgium, Cyprus, Hungary, Malta and Poland – to cut their budgets or risk facing sanctions. He also summed up international worries about the ailing region. “Concern about the sovereign debt crisis in several euro-area member states, together with the weakening global economic conditions, have led to a sharp fall in confidence since April this year,” said Rehn. Rehn is only the latest official sounding a warning. International Monetary Fund chief Christine Lagarde is urging “clarity” from Italy and Greece, which face political as well as economic turmoil. And noting the sluggish growth and high unemployment in the United States, she is warning of a “lost decade” ahead for the world economy. “Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of a downward spiral of uncertainty, financial instability and a potential collapse of global demand,” said Lagarde. A Reuters report said officials from Germany and France have discussed a fundamental overhaul of the European Union, to create a smaller, more integrated eurozone group compared to the rest of the 27-member EU. Officially, however, both France and Germany say it is essential the eurozone remains intact. Additionally, analyst Philippe Moreau Defarges, of the Paris-based French Institute of International Relations, said creating these two European systems would be problematic in practice. “It’s very difficult because the juridical issue… in English you say ‘the devil is in the details’ – I would say what is important is in the details. It means that, of course, you can imagine a very ambitious scheme, very ambitious modification on the paper, but when you want to implement that… it’s much more difficult,” said Defarges. What is certain is that the eurozone crisis is likely to dominate the news here for the months to come, with pressure growing for European leaders to come up with a comprehensive and sustainable solution.

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Syrian security forces have opened fire on protesters in several parts of the country, killing at least six people. Activists say anti-government demonstrators were killed on Friday after Syrian forces used live ammunition on opposition rallies in areas that include Damascus suburbs. The crackdown on dissent occurred the same day that U.N. human rights officials said the death toll from seven months of anti-government protests in Syria had topped 3,000. U.N. High Commissioner for Human Rights Navi Pillay warned that Syria’s violent repression of dissent could drive the country into full-blown civil war. She added that about 100 people had died in the past 10 days. On Thursday, activists said clashes between security forces and armed men who were believed to be army defectors left at least 19 people dead. They say some of the violence took place in the northern Idlib province, where security forces battled army deserters and gunmen. Syria has used military force to crush months of opposition protests calling for the ouster of Syrian President Bashar al-Assad.  The crackdown has led to international condemnation of Syria that includes a European Union decision, on Thursday, to impose sanctions on Syria’s biggest state bank. President Assad’s government has blamed much of the deadly violence on “armed gunmen” and “terrorists.” Some information for this report was provided by AP, AFP and Reuters. Follow our Middle East reports on Twitter and discuss them on our Facebook page.

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Medication capsules are pictured during packaging process in this November 23, 2010 file photo. Credit: Reuters/Ints Kalnins By Lisa Richwine WASHINGTON | Thu Jun 16, 2011 7:25am EDT WASHINGTON (Reuters) – New cancer medicines typically reach the U.S. market several months before they go on sale in Europe, according to a study published amid a debate about access to new drugs. The findings released on Thursday counter a common belief among doctors, academics and investors that new oncology drugs often reach European patients first, said researchers from the nonprofit advocacy group Friends of Cancer Research. Each of the 23 cancer drugs approved by the United States and Europe over a seven-year period debuted in the U.S. market, the study found. Drugmakers usually submitted their medicines to the U.S. Food and Drug Administration first, and the FDA review period was generally shorter at around six months. In Europe, the median review time was nearly a year at 350 days. “To patients battling cancer, with no treatment options, access to new medicines five-and-a-half months sooner is a very important and potentially life-saving difference,” said Ellen Sigal, who chairs and founded the cancer group. The findings were published online in the journal Health Affairs. The researchers analyzed regulatory review times for 35 new cancer drugs approved in either the United States, Europe or both between 2003 through 2010. Twenty-three medicines won clearance in both regions. Europe cleared three medicines the FDA did not approve. The FDA gave a green light to nine drugs that did not reach the European market. The researchers did not analyze the reasons for the conflicting decisions. FDA Commissioner Margaret Hamburg, in a statement, said the findings “reflect FDA’s commitment to foster access to effective therapies in a responsive and timely manner.” The agency has drawn fire from some manufacturers as being too cautious in analyzing cancer and other drugs as well as medical devices. Some critics say the FDA is harming innovation and U.S. competitiveness with unnecessarily tough requirements. The medical device industry has argued vocally that the FDA is driving companies to Europe where developers see a quicker path to the market. Consumer advocates and others, meanwhile, argue that the FDA may sacrifice safety for speed and should demand more data from companies. Dr. Janet Woodcock, the FDA’s top drug official, said the agency was “not in a race with other regulatory agencies.” But she said the cancer drug findings could help dispel an “urban myth” that the United States was routinely falling behind Europe on approval decisions. “FDA review of cancer drugs is efficient. It’s rapid. The real problems are in the scientific development programs and scientific uncertainty” about how to attack cancer, she said. For investors, the findings show “there are certain things that are working quite well” in the United States, said Jonathan Leff, managing director of healthcare at private equity firm Warburg Pincus. He pointed to the FDA’s accelerated approval process, a program designed to bring new drugs for serious diseases to the market quickly based on early data. Investors worry, however, that the FDA will require companies to produce more data to show safety and effectiveness for cancer drugs as the agency has in other areas. “The fear this is bleeding over into oncology is palpable,” Leff said. The study’s authors said their results showed the need for Congress to adequately fund the FDA. They planned a briefing for congressional staff on the findings on Thursday. Republican lawmakers in the U.S. House of Representatives have proposed steep cuts to the FDA’s budget. “Strong public and congressional support is desperately needed for the FDA to continue this trend and to improve its scientific foundation,” Sigal said. (Reporting by Lisa Richwine; Editing by Tim Dobbyn )

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