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EC warns euro area about debt as it cuts inflation forecast

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The European Commission has cut its forecast for Spanish GDP growth in 2016 to 2.6 per cent from the 2.8 per cent it predicted in February. Spain, France and Italy have persistently failed to hit the European Union's budget targets.

Brussels

THE European Commission (EC) told the euro area's largest economies to reduce debt and modernise labour markets as it again slashed its inflation forecast and warned of slower-than-predicted growth across the 19-nation bloc.

France, Spain and Italy, which have persistently