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| Version 1 | Version 2 |
|---|---|
| European economy 'will shrink 4%' | European economy 'will shrink 4%' |
| (11 minutes later) | |
| The eurozone and EU economies will contract by 4% this year the European Commission has forecast, in a massive revision from its earlier prediction. | The eurozone and EU economies will contract by 4% this year the European Commission has forecast, in a massive revision from its earlier prediction. |
| And unemployment in the 16 countries using the euro is expected to rise to 11.5% in 2010, and to reach 10.9% in the 27-nation EU next year. | And unemployment in the 16 countries using the euro is expected to rise to 11.5% in 2010, and to reach 10.9% in the 27-nation EU next year. |
| In January, the commission said the eurozone would shrink by 1.9% in 2009 and grow by 0.4% in 2010. | In January, the commission said the eurozone would shrink by 1.9% in 2009 and grow by 0.4% in 2010. |
| Now it expects the eurozone economy to shrink by 0.1% next year. | |
| "The main factors behind the recession are the worsening of the global financial crisis, a sharp contraction in world trade and ongoing housing market corrections in some economies," the commission said in a statement. | |
| Countries needed to focus on cleaning up banks' toxic assets, it added. | |
| The commission also expects inflation to fall well below the European Central Bank's target of 2%. | |
| "The European economy is in the midst of its deepest and most widespread recession in the post-war era," said EU Economic and Monetary Affairs Commissioner, Joaquin Almunia. | "The European economy is in the midst of its deepest and most widespread recession in the post-war era," said EU Economic and Monetary Affairs Commissioner, Joaquin Almunia. |
| "But the ambitious measures taken by governments and central banks in these exceptional circumstances are expected to put a floor under the fall in economic activity this year and enable a recovery next year." | "But the ambitious measures taken by governments and central banks in these exceptional circumstances are expected to put a floor under the fall in economic activity this year and enable a recovery next year." |