The European Commission lowered next year's growth forecasts for the euro-area region by more than a half, as the Commission considers recession risks, which are threatening the region as European leaders are struggling to contain the two-year old debt crisis and now are facing political instability in Greece and Italy.

The Commission expects the Gross Domestic Product (GDP) to grow 1.5% this year, while figures for 2012 are projected to stand at 0.5%, noting that the Commission projected the region to expand by 1.6% this year and 1.8% in 2012. In 2013, the Commission expects that GDP figures to improve by 1.3%.

Olli Rehn, the European Union economic and monetary affairs commissioner said the outlook is unfortunately gloomy, and added that the forecast is in fact the last wake-up call. The recovery has now come to a standstill and there's the risk of a new recession unless determined action is taken.