Rehn: EU 'standstill' expected

The European Monetary Commissioner, Olli Rehn, has said Europe's economic outlook has deteriorated sharply as fears over the Eurozone debt crisis hamper growth.

Unveiling his interim economic forecast for the eurozone, Mr Rehn said the risk of countries defaulting on their sovereign debt was behind the latest market sell-offs.

He told a conference in Brussels that "the European Union is expected to come to a virtual standstill towards the end of year".