The European Commission cut its growth forecasts for the eurozone and the wider European Union.  The Commission predicts that the eurozone will grow by 0.8% in 2014 and 1.1% in 2015. In the spring, which is when the Commission last published such estimates, it revised up its growth forecasts for 2014 to 1.2% and to 1.7% for 2015.

Today’s downgrade confirms that the economic recovery that began to emerge earlier this year in Europe is losing momentum. Weak growth over the coming years is expected to make only a small dent in unemployment in both the eurozone and across the EU.

Growth in 2014 and 2015 will be stronger outside the eurozone in 2014. The EU economy as a whole will grow by 1.3% in 2014 and 1.5% in 2015.  By comparison, the Commission estimates that the United States economy will grow by 2.2% in 2014 and 3.1% in 2015.

The Commission presented its autumn economic forecasts, based in part on draft national budgets and forecasts submitted to the Commission by eurozone governments in mid-October.

The Commission will use its latest forecasts to assess to what extent the draft national budgets comply with eurozone budget rules that set limits on public spending and debt. It is expected to publish the opinions by mid-November.

Pierre Moscovici, the European commissioner for economic and financial affairs, presented the forecasts together with Jyrki Katainen.  Katainen admitted that the “economic and employment situation is not advancing fast enough”. Both he and Moscovici stressed the need for greater investment, without letting up on fiscal consolidation and structural reforms.

Some eurozone economies will enjoy strong growth in 2014. Luxembourg and Malta are predicted to register growth of 3%, while Ireland is expected to grow by 4.6%