Wednesday, May 29, 2013

EU shifts focus to economic reforms in quest for growth...Cuts will continue!

Euro zone countries must focus on reforming their labor and services markets and can slow the pace of debt-cutting, the European Commission said on Wednesday, marking a shift away from austerity.

The change of emphasis comes as the euro zone struggles to escape a second consecutive year of recession and record high unemployment brought on by the collapse of investor confidence during three years of debt crisis.

The EU's executive warned urgent action was required but said spending cuts would still have to be made.