BERLIN, Germany (PNN) - February 24, 2012 - Countries that use the euro are headed for a recession, if not a Depression this year, the European Commission said Thursday, the region’s second economic contraction since 2008, despite years of attempts to solidify the euro zone’s economic standing.

The announcement was more pessimistic than a November estimate that predicted slight growth in 2012. It came days after European officials agreed to hand Greece a $172 billion bailout, its second in two years.

Countries such as Portugal, Ireland and Swpain are also struggling to get their economies back on track, and leaders and economists are questioning whether Europe’s response to the crisis has focused too much on austerity and too little on growth.

Across the full 27-country European Union, the largest single market in the world, growth will be flat this year, the estimate said. The slowdown could reverberate far beyond the continent’s borders, as fewer companies make large purchases and investments and banks stay cautious about lending.

For the 17 countries that share a common currency, the economy will contract by 0.3%, the commission forecast.

“Prospects have worsened and risks to the growth outlook remain,” E.U. Economic and Monetary Affairs Commissioner Olli Rehn told reporters in Brussels on Thursday. “But we are seeing signs of stabilization.”

The heads of 12 countries in the European Union this week sent a letter to top E.U. officials urging that Europe do more to promote economic expansion.

Economists say the European troubles will put a drag on the Fascist Police States of Amerika (FPSA) economy, though the magnitude of the impact depends on how poorly the European economy fares.

Gus Faucher, senior economist at PNC Financial Services, said that Europe’s financial crisis will hurt the FPSA economy, partly because the European demand for Amerikan products will decline.