BRUSSELS: The European Commission warned Wednesday that growth in the Eurozone, the twelve nation euro currency area, is set to fall to zero in the first quarter of 2007.

A significant factor in the downbeat forecast is Germany's planned increase in value-added tax, which is expected to depress economic activity.

However, the EC forecasts continued growth for the remainder of 2006, with expectations ranging from 0.2% to 0.7% in the third quarter and 0.4% to 0.8% in the fourth.

Data sourced from International Herald Tribune Online; additional content by WARC staff