Merkel denies plan to cut number of countries in eurozone

Germany and France are dismissing suggestions that they are planning a radical overhaul of the European Union because of the lingering debt crisis.

There had been speculation that the two countries were considering a plan to cut the number of countries in the eurozone.

However, the German Chancellor Angela Merkel has said her country aims to preserve the eurozone in its current form and that her main aim is to stabilise the eurozone.

Earlier the EU Economic and Monetary Affairs Commissioner warned that Europe faces a new recession next year.

The European Commission also cut its growth forecast for the eurozone for next year from 1.8% to just 0.5%.