Euro economy 'to grind to standstill next year'

The European economy will “grind to a standstill” next year, the European Commission warned today.

EU-wide economic growth of 2.9% in 2007 will more than halve to 1.4% by the end of this year and plunge to just 0.2% in 2009, according to the autumn forecast on the situation in the 27 member states.