BRUSSELS - The EU slashed its already low growth forecast for the eurozone on Thursday , intensifying pressure on Germany and other rich countries to spend more to stimulate the economy in Europe.
"The European economy has held up well despite a less favourable external environment," said European Commission Vice-President Valdis Dombrovskis. The European Central Bank, backed by the IMF and leading economists, has led a campaign to persuade Germany, Netherlands and others to boost spending, but so far those countries have refused the call.
Despite the poor performance, Germany is slated to keep running public budget surpluses over the next three years, building up a cash pile that the commission believes could be better spent boosting the economy.