Further slowing of EU growth

External factors were largely blamed for the latest slowdown in EU growth, setting back recovery and forcing the European Commission to revise down its growth projections for this year.

The forecast is important for a number of reasons, including that the national budget plans each country submitted to the European Commission last week will be assessed against it, and as a result the Commission may ask member states to change their budgets.

Germany, France, and Italy, the eurozone’s largest economies, all had their forecasts cut, contributing to an expectation of just an 0.8% increase in GDP in the 18 euro member states this year compared to an expected 1.2% six months ago.