Tough forecast a wake-up call, warns Rehn

THE EU economy is moving into dangerous territory with growth slowing to stagnation and a new recession looming large, according to the latest forecast.

Economics Commissioner Olli Rehn bluntly said: “This forecast is the last wake-up call. The recovery in the EU has come to a standstill and there is a risk of a new recession.”

One bright spot is Ireland, with the European Commission expecting growth to be double the EU average next year at 1.1%, surpassing Germany and France and doubling again to 2.3% in 2013.