EU reduces euro area growth expectations

© Scanpix/AFP

European Commission lowered its euro zone growth prediction for year 2012 at around 50% of previous expectations. If earlier European Commission predicted 1.6% growth this year and 1.8% next year, then current forecasts claim growth to be around 1.5% in 2011 and 0.5% next year.  Olli Rehn, EU commissioner of EU economic and monetary affairs warned that Europe is exposed to risk of new recession.