The EU has drastically cut its growth forecast for the Eurozone next year - from 1.8% down to 0.5%.
European Commissioner Olli Rehn warns growth has stalled and there is a risk of a new recession.
The BBC reports the low growth makes it harder for Europe to escape its debt crisis.
Commenting on the current eurozone crisis, British Prime Minister David Cameron said that eurozone leaders "must act now".
"The longer they delay, the greater the danger," he added.
The continuing problems in Europe also saw the International Energy Agency cut its forecast for oil demand.
Meanwhile, the euro continued to weaken on Thursday, touching a one-month low of $US1.35 against the US dollar and a two-week low of 105.1 yen against the Japanese currency.