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| European Commission predicts 'turning point' in Europe | European Commission predicts 'turning point' in Europe |
| (35 minutes later) | |
| The European Commission has said the European economy has reached a turning point, with growth of 0.5% predicted in the second half of the year. | The European Commission has said the European economy has reached a turning point, with growth of 0.5% predicted in the second half of the year. |
| In its closely-watched autumn forecast the Commission predicted 1.4% growth in the EU next year and 1.9% in 2015. | In its closely-watched autumn forecast the Commission predicted 1.4% growth in the EU next year and 1.9% in 2015. |
| "There are increasing signs that the European economy has reached a turning point," said Olli Rehn, commissioner for economic and monetary affairs. | "There are increasing signs that the European economy has reached a turning point," said Olli Rehn, commissioner for economic and monetary affairs. |
| The Commission publishes forecasts three times a year. | |
| Despite the upbeat prognosis, the Commission said it expected the recovery to be gradual. | Despite the upbeat prognosis, the Commission said it expected the recovery to be gradual. |
| "While the financial market situation has improved significantly and interest rates have declined for vulnerable countries, this has not yet fed through to the real economy," Mr Rehn said. | "While the financial market situation has improved significantly and interest rates have declined for vulnerable countries, this has not yet fed through to the real economy," Mr Rehn said. |
| In the eurozone - the 18 member states which use the euro - the Commission predicted growth of 1.1 per cent next year, down from its May forecast of 1.2%, and 1.7% in 2015. | |
| The Commission blamed weaker investment and the fact it expected inflation to stay below the central bank target over the next two years. | |
| It also expects unemployment in the eurozone to improve only gradually, expecting it to stay around current levels for two more years and only dropping to 11.8% in 2015. | |
| On an individual country basis, the Commission significantly upgraded its forecasts for the UK from 0.6% to 1.3% for this year and from 1.7% to 2.2% for next year. | |
| "2013 has thus far exceeded expectations and the outlook is quite bright," the report said on the UK. | |
| The Commission also expects Greece's recession this year to be slightly less severe than its earlier forecast, predicting a fall in growth of 4% this year compared to its earlier prediction of a 4.2% fall. |