国际英语新闻：EU economy in fragile recovery as debt crisis looms large

BRUSSELS, Feb. 25 (Xinhua) -- Economic recovery in the European Union (EU) will remain fragile this year as a debt crisis looms large, the European Commission warned in a report on Thursday.

According to the report, both the whole EU and the 16-nation euro zone were forecast to see a sluggish growth of 0.7 percent in 2010, after shrinking 4.1 percent and 4.0 percent respectively in 2009.

After hard hit by the financial crisis, the EU economy is now recovering from the deepest and longest recession in its history. Real gross domestic product (GDP) started to grow again in the third quarter of 2009, thanks to the exceptional crisis measures put in place in the EU.

However, growth eased in the fourth quarter, as the impact of some temporary factors, such as the car-scrapping scheme in Germany that ended in September, started to fade.

"The exceptional crisis measures put in place in the EU and its major trading partners played a key role in turning the economy around, with inventory adjustment shaping the short-run dynamics," the commission said.

While the EU economy is gradually recovering, it is still facing headwinds.

"Uncertainty surrounding these projections remains rife, as recent developments in financial markets illustrate well," the commission said.

The Greek debt crisis and worsening public finances in several other eurozone countries posed one of the biggest challenges to the European economic recovery, which contributed to recent volatility in the financial markets and sent down the euro.