The prospects for economic growth in the euro zone is looking increasingly bleak after the European Union’s executive arm slashed its forecast, citing the need for “credible” fiscal policies, “ambitious” structural reforms and “much-needed” investment.
“The economic and employment situation is not improving fast enough,” said European Commission Vice-President Jyrki Katainen in the body’s autumn economic report on Tuesday.
The euro zone is now seen growing by 0.8 percent this year, down from the 1.2 percent forecast in May. In 2015, the area is seen expanding by 1.1 percent, down from 1.7 percent. “The EU’s recovery appears weak in comparison to other advanced economies, and with respect to historical examples of post-financial crisis recoveries, even though these too were typically slow and fragile,” said the Commission.