The European Commission has said the European economy has reached a "turning point", but the eurozone will grow less quickly than previously expected.
The Commission said there were "signs of hope" that had started to turn into "tangible positive outcomes".
But in the eurozone—the 18 nations that use the euro—it predicted growth of 1.1% next year.
This is the second downward revision of 2014 eurozone growth this year, after it was cut from 1.4% to 1.2% in May.
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