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The eurozone is still struggling with excessive levels of debt in several of its member countries, including Greece, Ireland, Portugal, Spain and Italy. A promise by the European Central Bank to buy the bonds of indebted countries if they promise to fix their finances has calmed bond markets over the past year, removing fears that a government might be unable to pay its debts. The ECB has cut its benchmark interest rate to a record low 0.5 percent and said rates will stay at that level or lower until the economy improves. Low rates can aid growth by cutting the cost of the credit companies need to expand. Growth, however, remains weak after governments cut spending to reduce debt. The eurozone's economy expanded 0.3 percent in the second quarter from the quarter before. Economists say stronger growth than that is needed to reduce unemployment, which is at a record of 12.1 percent.
[Associated
Press;
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