SHAFAQNA (Shia International News Association)- The European Commission has sharply slashed its growth forecasts for the eurozone for the next year.
The commission made a revision in the 18-country bloc’s economic outlook, predicting its currency will only grow 1.1 percent in 2015, down from a 1.7 percent forecast just six months ago.
The European Commission said the delay in the upturn is due to drag on the economy from France and Italy.
Germany and France, the two largest eurozone economies, will also see a drop in their growth by nearly a full percentage point for 2015, the commission added.
The inflation in the eurozone for 2015 will be 0.8 percent, still below the target of the two-percent level that has been declared as healthy for the economy.
The European Commission also noted that the fragile eurozone would need another year to reach even a modest level of growth.
“There is no single, simple answer to the challenges facing the European economy,” Pierre Moscovici, the commission’s new economic chief, said in a statement on Tuesday, adding, “We must all assume our responsibilities, in Brussels, in national capitals and in our regions, to generate higher growth and deliver a real boost to employment for our citizens.”
Europe plunged into financial crisis in early 2008. The threat of insolvency has plagued heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland, and Spain.
The debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.