In a frank assessment of the depth of Europe's recession, the document obtained by the Financial Times states that unemployment will rise sharply this year and in 2010, and the 16-nation eurozone will have to tackle persistent gaps in business competitiveness among its member states.
The policy paper paints a darker picture of the EU's outlook than forecasts published in January by the European Commission, which spoke of a gradual economic recovery in the course of next year.
The Commission said gross domestic product was expected to fall by 1.8 per cent in the 27-nation bloc this year but would expand by 0.5 per cent in 2010.
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