European Commission: Eurozone Economy Will Contract More Than Expected This Year

France, Spain, Italy and the Netherlands will be in recession this year

(Reuters)—The euro zone economy will contract by more than expected this year and budget deficits will decline more slowly, the European Commission said on Friday as it set out forecasts for the next two years.

France, Spain, Italy and the Netherlands—four of the five largest euro zone economies—will be in recession through 2013, the Commission's forecasts showed, with only Germany, the largest euro zone economy, managing to eke out growth.