EU Says Economy Has Reached A Turning Point

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It appears, however, to be failing to turn. Or veering in the wrong direction.

The European Commission has said the European economy has reached a "turning point", but the eurozone will grow less quickly than previously expected.

The Commission said there were "signs of hope" that had started to turn into "tangible positive outcomes".

But in the eurozone - the 18 nations that use the euro - it predicted growth of 1.1% next year.

This is the second downward revision of 2014 eurozone growth this year, after it was cut from 1.4% to 1.2% in May.

Let’s take a tour of the disappointments.

The new forecasts may add pressure on the government of French President François Hollande to pursue more austerity to meet EU budget deficit targets….

Spain is also forecast to miss its budget target by a wide margin, possibly requiring more budget cuts. The government's latest fiscal plan, negotiated with EU authorities, aims to cut the deficit to 4.1% of GDP in 2015. The commission's report forecasts the Spanish deficit at 6.6% of GDP in 2015….

Growth in the biggest euro-zone economies, Germany and France, will be relatively weak, the report says, and not enough to engineer a strong recovery in the weakest euro-zone countries.

Like, say, Greece, where this is happening:

Greece's third-biggest lender, Eurobank , plans to shed about a tenth of its workforce through voluntary redundancy as part of measures to make it fit for privatisation….

Eurobank employees have until November 15 to say whether they accept the deal, which contains a compensation package whose size depends on their years of service with the company.

EU Expects Sluggish Growth, High Unemployment [WSJ]
European Commission predicts ‘turning point’ in Europe [BBC]
Greece’s Eurobank to shed around 10 percent of employees [Reuters]

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