The eurozone is on track for a slow recovery from recession later this year, but the European Commission's spring economic forecast said Spain and France will miss their deficit reduction targets.

EU Economic Affairs Commissioner Olli Rehn is guardedly optimistic for the entire 17-nation eurozone.

Rehn told reporters: 'The European economy is estimated to be currently in a mild, but short lived, recession and then subsequently a slow and subdued recovery is forecast to begin from the second half of the current year onwards and continue over the forecast horizon of this year and next year'




The currency bloc's economy is forecast to shrink by 0.3 percent this year and grow by 1.0 percent next year.

Eurozone debt will be just under 92 percent of gross domestic product.

Unemployment will stay at a record high 11 percent this year and next.

The commission's economists pointed out there are large disparities between member states.

*Spain*

Facing 'difficult times ahead,' Spain is forecast to be the only eurozone nation in recession in 2013, shrinking by 0.3 percent after contracting by 1.8 percent this year, the commission said.

Compounding Spain's problems, the commission said the country's public deficit would reach 6.4 percent this year, way off the government's target, an.