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Islamic State group claims London attack - IS-linked agency
Growth will drop 0.1 per cent, it believes, and investment will continue to decline.
The jobless figures, which hit a record number but not a record percentage in March, are expected to continue to rise to 10.9 per cent.
The commission is no more optimistic on the headline-grabbing public deficit, forecasting a rise from 3.9 per cent to 4.2 per cent, casting doubt on the government’s commitment to reduce it to 2.9 per cent in 2014.
The commission forecasts a 0.1 per cent drop in GDP for the whole EU and 0.4 per cent in the euro area this year but expects a return to growth in the second half of 2013.