EUROPE LOOKING INTO FALLOUT FROM VOLCANIC ERUPTION

20.04.2010 [23:17]
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Baku, April 20 (AZERTAC). As Europe struggles to reopen airports shuttered by a vast cloud of volcanic ash, European economists and politicians are beginning to assess its impact on the economy.

European Commission chief Jose Manuel Barroso has ordered a comprehensive study on the impact of the volcanic ash cloud on the region`s economy, but some of the fallout is easily apparent.

The full or partial closure of air spaces in about 30 European countries during the past few days has created havoc for the airline and tourism industries. Airline companies say they are losing about $270 million a day.

Chief economist Simon Tilford, of the London-based Center for European Reform, says insurance and air freight companies, along with delivery companies like United Parcel Service are also taking a hit.

"Some of the most vulnerable people are actually some of the poorest. So, if we look at the exporters of produce, much of which is flown from East Africa to Europe and the U.S. - they are going to be hit very, very hard," Tilford said.

European Union officials have been scrambling to find solutions. E.U. transportation ministers are holding a video conference on the dilemma later on Monday. E.U. Transportation Commissioner Siim Kallas says the ash cloud could be a bigger economic blow to the airline industry than the September 2001 attacks on the United States.

"This is unprecedented. Such a long time, such a big airspace, totally closed. And this is something that cannot be very easily solved immediately," Kallas said.

EUROPE LOOKING INTO FALLOUT FROM VOLCANIC ERUPTION

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