The gloom shrouding the euro-zone economy deepened with heavyweight Germany running foul of budget rules and France in danger of doing so. "The recovery is much slower than anticipated," the European Union's executive Commission said in its autumn economic forecasts, blaming factors including a renewed slowdown in the United States and collapsing stock markets. Growth of gross domestic product (GDP) in the 12-nation euro zone will be 0.8 percent this year, rising to 1.8 percent next year, the commission forecast. Germany is set to breach the euro-zone's Stability and Growth Pact this year and next, with a public deficit at 3.8 percent of GDP in 2002 and 3.1 percent in 2003, according to Brussels.

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