European Commission reverses estimate

The European Commission has reversed its prediction of slight economic growth in 2009 and now forecasts the Eurozone is headed for contraction, a report said.

In November, the commission said the 16 members of the Eurozone would likely see 0.2 percent economic growth. An interim report turned that around, calling for a contraction of 2 percent, the EU Observer reported Monday.

Finance ministers from member states in a meeting Monday agreed governments need to pass stimulus measures to prop up their struggling private sectors, the Observer reported.

A Deutsche Bank report said public debt for the Eurozone would reach 75.1 percent of the region’s gross domestic product in 2009, climbing from 2008′s 67.5 percent. Those numbers exclude Slovakia, which joined the Eurozone two weeks ago.