Europe’s Economy has ‘Reached a Turning Point’, said European Commission

Yesterday, the European Commission revealed that economy of Europe has `reached a turning point' and the economy will keep on recovering over next year.

Growing business confidence and increasing domestic demand are expected to support the revival. This was told by the commission, the European Union's executive arm.

"There are increasing signs that the European economy has reached a turning point", said the EU commissioner for economic and monetary affairs Olli Rehn.

Mr. Rehn said that the EU's economy is likely to grow 0.5% over the second half of the year and will increase to 1.4% in the year 2014. The last predictions of the commissioner were issued in May. According to the predictions, a drop of 0.1% was expected in the year 2013.

On the whole, the eurozone in the year 2013 is still expected to witness a decline of 0.4%. The growth of 1.1% is being expected by the commission in the next year.

Unemployment in the eurozone is likely to continue at 12.2% during this as well as the next year, thereby falling to 11.8% in the year 2015. Scottish Labour MEP David Martin said that austerity programmes all over the Europe can be held responsible for the lack of growth in overcoming the problems related to unemployment.

Mr. Martin added that four or five years of little investment cannot help in the recovery.