European Union Cuts Growth Forecasts as Big Economies Falter

The European Union reduced its economic growth forecasts for the bloc on Tuesday, indicating the recovery will remain sluggish among problems for the biggest economies, particularly France. The official forecast for growth this year in the 18-country eurozone was cut to 0.8% from a prediction of 1.2% made in the spring.The broader 28-nation EU, which includes non-euro members like Britain and Sweden, was expected to grow 1.3% this year, down from a 1.6% forecast previously. "The economic and employment situation is not improving fast enough" in the wake of the financial crisis that has hit the continent for the past half-decade, said EU Vice President Jyrki Katainen. France has been under pressure for years to improve its economic performance but the EU forecast said that "growth is forecast to remain low in 2014 and 2015" while its deficit and overall debt "are expected to continue rising."