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 autumn forecast the Commission predicted 1.4% growth in the EU next year and 1.9% in 2015.

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

Despite the optimistic prediction, 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.

The commission publishes forecasts three times a year.