- Pierre Moscovici, EU's economics commissioner
The European Commission cut is Euro zone growth outlook, saying the region's economy would expand 0.8% this year, 1.1% next year and 1.7% in 2016. France and Italy were the main catalyst, which caused the delay in the recovery. Germany's economy, the Euro area's powerhouse, would also face a slower growth than the Commission had expected, expanding 1.1% in 2015, compared with 2% rate estimated in the Spring forecasts. Germany has also downgraded its growth forecast for this year and next to 1.2% and 1.3% down from 2% and 1.8%, respectively, blaming sluggish global growth and geopolitical crises. Nevertheless, the Commission calls on Germany to help, but admitted that it would not be enough, as all EU member states should reform to boost growth. Meanwhile, German Chancellor Angela Merkel refrained from additional borrowing, resisting pressure from some of its partners to do more to boost growth. She also stressed that the domestic economy was stable, but international tensions, including the Ukraine crisis, had resulted in an uncertain business climate.
In the meantime, the number of people registered as unemployed in Spain rose by 79,200 in October following the 19,700 increase a month earlier, according to the Ministry and Social Security. The jobless rate dropped to 23.67% in the third quarter, from 24.5% through June and 25.65% one year ago, as the country recovers slowly from the bursting of the real estate bubble.
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