European Commission predicts 'turning point' in Europe

Olli Rehn said the European economy had reached a 'turning point'.

The European Commission has said the European economy has reached a turning point, with growth of 0.5% predicted in the second half of the year.

In its closely-watched autumn forecast the Commission predicted 1.4% growth in the EU next year and 1.9% in 2015.

"There are increasing signs that the European economy has reached a turning point," said Olli Rehn, commissioner for economic and monetary affairs.

The commission publishes forecasts three times a year.

Despite the upbeat prognosis, the Commission said it expected the recovery to be gradual.

"While the financial market situation has improved significantly and interest rates have declined for vulnerable countries, this has not yet fed through to the real economy," Mr Rehn said.