Greece has suffered the most from the vicious slow growth cycle and is now in its fifth year of recession. Many say it's unclear how the country will ever manage to reduce its debts, spark growth and break the cycle. The new forecast expects Greece's economy to contract 6 percent this year and another 4.2 percent next year. In the spring, the commission had hoped growth would be flat in 2013.Because low or negative growth reduces the amount of money governments receive in taxes, stagnation also threatens to throw countries off their deficit targets. According to the report, both Greece and Spain won't meet their goal of reducing their deficits to 3 percent by 2014. It predicts Greece's will be 4.5 percent at that point and Spain's 6.4 percent.
EU: Eurozone Recession To Be Worse, Rebound Slower
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts