EU issues downbeat outlook as growth stalls

GROWTH has stalled, the recovery evident earlier this year has halted and the risks for the future are high, the EU warned in its half-year review.

The gloomy report should concentrate the minds of finance ministers heading to Poland for a two-day meeting beginning today, which will also be attended by the US treasury secretary Timothy Geithner.

While growth is expected to come to a standstill at year-end amid the continuing financial crisis, there will not be a double-dip recession, the EU’s Economic Affairs Commissioner Olli Rehn said.