The spring economic forecasts of the European Commission that were released on Monday record the return to growth for the European Union and the Eurozone.

According to these forecasts, growth is set to reach 1.6% in the EU and 1.2% in the Eurozone in 2014, and to improve further in 2015 to 2% and 1.7% respectively.

The forecast rests on the assumption that the agreed policy measures will be implemented by Member States. European Commission Vice President Siim Kallas, commenting on the spring 2014 forecast said that “the recovery has now taken hold. Deficits have declined, investment is rebounding and, importantly, the employment situation has started improving”.

Although forecasts are positive substantial differences persist across Member States. Labor market conditions started to improve in the course of 2013 and a further decline in unemployment rates should follow in 2015 (to 10.1% in the EU and 11.4% in the euro area).

Inflation is expected to remain low, both in the EU (1.0% in 2014, 1.5% in 2015) and in the euro area (0.8% and 1.2%). The reduction in general government deficits is set to continue. More specifically, the debt-to-GDP ratio will peak at almost 90% in the EU and 96% in the euro area.

0.6% growth in 2014 in Greece

According to the Commission’s spring forecasts, after six years of recession, growth in Greece is set to reach 0.6% in 2014 and 2.9 % in 2015.

Inflation in 2014 is expected to reach 0.8% and 0.3% in 2015. The unemployment rate from 27.3 in 2013 will decline slightly in 2014 reaching 26% and will be further reduced in 2015 to 24%.

The ratio of government debt from 177.2 % in 2014 (a slightly higher figure than the 177% ratio predicted in December) will be reduced to 172.4 % in 2015.

Cyprus

The European Commission predicts a -4.8% decline for Cyprus in 2014. However, growth is set to resume in 2015 reaching 0.9%. Unemployment in Cyprus will reach 19.2 % in 2014 and 18.4 % in 2015.

Germany, France, Italy

The forecasts for the three largest economies of the euro area show that German economy will grow by 2% in 2015, while unemployment will remain at 5.1%.

France will present 1% growth in 2014 and 1.5% in 2015, well below the 1.75% growth promised by the French Ministry of Finance, while the unemployment rate will fall from 10.4% in 2014 to 10.2% next year. Growth in Italy is set to reach 0.6% in 2014 and 1.2% in 2015, while unemployment will fall to 12.5% in 2015.

The country’s government debt, the largest after Greece will reach 135.2% in 2014 and 133.9% in 2015.