EU predicts eurozone recession will continue

The Euro sculpture is seen behind a fountain statue at Willy-Brandt-Platz in Frankfurt. Credit: PA Wire/Nicolas Armer

Four of the eurozone's biggest economies will shrink more than expected this year, the EU's Economy Commissioner predicted today.

The recession in the euro area will be worse than expected with unemployment remaining at record levels, according to the latest economic forecast from the European Union.

The EU's Economic and Monetary Affairs Commissioner, Olli Rehn, said GDP in the 17 countries that use the euro will shrink by 0.4 percent this year.

Mr Rehn predicted that France, Italy, Spain and The Netherlands will stay rooted in recession, while only Germany - the eurozone's largest economy - is expected to grow.

ITV News Economics Editor Richard Edgar reports: