Euro Zone Will Face a Tough 2012

The European Commission in its interim forecast report has warned that the European Union has yet to break its vicious cycle of debt, and the euro zone economy could be heading into its second recession in just three years, while the wider, 27-nation European Union, which generates a fifth of global output, will not manage any growth this year. According to the report, the 17 nations sharing the euro will see their economic output contract by 0.3 percent this year, against an earlier forecast of 0.5 percent growth in 2012. Inflation for the euro zone this year should be at…