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| Version 1 | Version 2 |
|---|---|
| EU raises its growth forecast for 2014 | EU raises its growth forecast for 2014 |
| (3 days later) | |
| The European Commission has raised its growth forecast for the EU, saying that "the recovery has taken hold". | The European Commission has raised its growth forecast for the EU, saying that "the recovery has taken hold". |
| The 28 nations of the EU are forecast to grow by 1.6% for 2014, a touch higher than the forecast of 1.5% made in late February. | |
| The growth forecast for the 18-nation eurozone remains at 1.2% for 2014. | The growth forecast for the 18-nation eurozone remains at 1.2% for 2014. |
| The Commission expects the jobs market to continue to improve, forecasting EU unemployment will fall to 10.1% this year. In March, the rate was 10.5%. | The Commission expects the jobs market to continue to improve, forecasting EU unemployment will fall to 10.1% this year. In March, the rate was 10.5%. |
| Unemployment in the euro-area is expected to fall to 11.4%, from 11.8% in March. | Unemployment in the euro-area is expected to fall to 11.4%, from 11.8% in March. |
| Siim Kallas, the Commission's vice-president, said: "The recovery has now taken hold. Deficits have declined, investment is rebounding and, importantly, the employment situation has started improving. | Siim Kallas, the Commission's vice-president, said: "The recovery has now taken hold. Deficits have declined, investment is rebounding and, importantly, the employment situation has started improving. |
| "Continued reform efforts by member states and the EU itself are paying off." | "Continued reform efforts by member states and the EU itself are paying off." |
| Europe's biggest economy, Germany, is expected to grow 1.8% this year. | Europe's biggest economy, Germany, is expected to grow 1.8% this year. |
| But 2014 growth is forecast to be much more modest for the euro-area's other big economies: | But 2014 growth is forecast to be much more modest for the euro-area's other big economies: |
| Inflation is expected to remain low in 2014, at 0.8% for the euro-area. That is lower than its previous forecast of 1.0% made in February. | Inflation is expected to remain low in 2014, at 0.8% for the euro-area. That is lower than its previous forecast of 1.0% made in February. |
| There is concern that Europe could slip into a period of deflation, which is dangerous, as it discourages investment by firms and spending by consumers. | There is concern that Europe could slip into a period of deflation, which is dangerous, as it discourages investment by firms and spending by consumers. |
| "While current price developments reflect both external factors and the ongoing adjustment process, a too prolonged period of low inflation could also entail risks," the Commission said. | "While current price developments reflect both external factors and the ongoing adjustment process, a too prolonged period of low inflation could also entail risks," the Commission said. |
| "However, the gradually strengthening and increasingly broad-based recovery should mitigate these risks," it added. | "However, the gradually strengthening and increasingly broad-based recovery should mitigate these risks," it added. |