Europe will remain mired in recession for the rest of this year, according to the latest EU forecasts.
The European Commission says the eurozone will shrink by 0.4 percent by the end of 2013., yet the EU executive’s economic chief remains upbeat.
“We will return to recovery in the second half of this year and on the condition that decisive policy action is taken in the member states and the european level it should have a more solid and sustainable recovery starting fro next year,” said Olli Rehn.
Austerity policies have been under fire from a number of EU leaders, as well as Nobel prize-winning economist Paul Krugman.
Now Brussels is softening its stance. It has given France and Spain an extra years to cut its deficit below the agreed three percent of GDP level
It is argued that slowing down the speed of spending cuts will bring back growth next year.
Those cuts have dampened consumer spending, leading to a knock-on effect in unemployment.
Forecasts suggest it will be as high 12.2 percent in the eurozone this year.
The Commission insists a structural overhaul of the European labour market is the best way to bring these numbers down, which should in turn get the economy going again.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Syrian refugee tripped by shamed camera woman is named
- 3Hungarian camera woman caught on video kicking and tripping migrants could face jail
- 4Hungarian reporter who tripped migrants apologises for her actions
- 5NASA discovers evidence of “liquid briny water” flowing on Mars
- 6Latest News Bulletin
- 7At least 220 dead in stampede outside Mecca, Saudi Arabia reports
- 8International breaking news | euronews online world breaking news in video
- 9What the top tweets worldwide are saying about #refugees
- 10Why aren’t rich Gulf states welcoming Syrian refugees… or are they?
- 11Hungarian camerawoman fired after being filmed kicking migrants
- 12Which European countries offer the most social benefits to migrants?
- 13Denmark: launches anti-migrant ad campaign
- 14Why aren’t rich Gulf states welcoming Syrian refugees…or are they?
- 15Spain: Catalan President faces ‘civil disobedience’ charges over breakaway vote
- 16Banzai back in the vocabulary as Japan passes law allowing combat deployments
- 17Exclusive: shipwatchers chart Russian hardware heading into Med
- 18International news | euronews, latest international news
- 19Migrant tripped up in Hungary gets Spanish football job
- 20[Live] All the Rugby World Cup news in one place