Over the review period (14 December to 24 January ), developments in the euro area financial markets reflected evolving policy rate expectations as. We expect to be a better year for the Euro area economy for three reasons. The review of the crisis management and deposit insurance should pave the way for further progress towards the completion of the Banking Union. The laws, called the Stability and Growth Pact, are now under review and the draft budgets are assessed using criteria that governments. With a sluggish economy and a downturn in German production, the eurozone outlook looks weak for The European Commission has downgraded its forecasts for EU and eurozone growth for as high interest rates weigh on economic activity, but. We lower our projection for core inflation over the next year. We expect the eurozone economy will grow by % in and % in , a marginal deviation from our previous forecast. Inflation across the 20 countries using the euro eased in the first month of , returning to a downward trend and feeding hopes that. The pattern of the. Eurozone economies have had a mixed start in The good news is that inflation has been easing faster than economists had initially expected, and labor. Germany, the eurozone's largest economy, saw consumer prices rise at an annual rate of percent in March, its slowest inflation since June. .