ECB's Fazio thinks Iraq crisis will hurt recovery

European Central Bank council member Antonio Fazio said a war with Iraq, as well as increasing the chance of terrorist attacks, may hamper an economic recovery.

Consumer spending is low because people "are dominated by fears of war and terrorist attacks," Fazio said in a speech to Italian currency traders. Avoiding war "could accelerate global production during the first half."

The economy of the 12 nations sharing the euro probably grew at its slowest pace in nine years last year, and may shri