Brussels fears the impact of the crisis on growth.

The European Commission has revised up slightly on Wednesday, its growth forecast to 0.9% for the EU in 2010.

The euro zone growth will do better than expected this year, but then things could get tougher for weak links - including Greece and Portugal - which continue to frighten the markets with their debt problems. The European Commission has revised upward its growth forecast Wednesday in 2010, 0.9% (against 0.7% previously forecast). In 2011, the forecast remains unchanged at +1.5%.
"The improved prospects for economic growth this year is good news for Europe," said Economic Affairs Commissioner Olli Rehn. But "we must ensure that risks to financial stability does not compromise this". These figures have initially supported the markets, before a relapse during the meeting.
Forecast 2011 decline
The Commission stressed that the pace of recovery could vary from one state to another. The Netherlands, Germany and France are expected to fare well in the game But in the South, we can expect a performance below average. Greece and could show a contraction of GDP - 3% this year and - 0.5% next year. Spain will be a little better, with growth expected to - 0.4% and 0.8% respectively. In Portugal, the Commission expects a GDP growth of +0.5% this year and 0.7% next year. For these three countries, forecast in 2011 have been revised downwards compared to the figures published in the fall.
The challenge for these countries is that they must serve their public finances without stifling the recovery. "Sustained growth requires fiscal consolidation efforts and specific reforms that improve productivity and employment", insisted Mr Rehn. The deficit is expected to reach 9.3% of GDP in Greece this year, against 9.8% and 8.5% in Spain to Portugal - the record being held by Ireland with 11.7%. But "if other measures sontentreprises farms (to clean up the accounts, Ed), we can expect that this will have an effect on growth," says one to the Commission.
While fears of contagion from the crisis scariest Greek markets, the EU executive wanted was reassuring. "Greece is unique and special," said Rehn, and "it is important to turn this brush fire before it becomes a forest fire in the European Union."
For its part, the head of the Eurogroup Jean-Claude Juncker, has ruled out any risk of contagion Greek, and any assumptions bursting of the euro area. As to former Commission President Jacques Delors, he expressed regret for lost time: "The firefighters are at work" to defend Greece and the euro, but "we must say they have been slow .