The European Commission released its Spring 2016 Economic Forecast report on Tuesday. The European Commission lowered its growth forecasts for this and next years. The Eurozone's economy is expected to expand 1.6% in 2016, down from its previous estimate of 1.7%, and 1.8% in 2017, down from its previous forecast of 1.9%.

Inflation was downgraded to 0.2% from 0.5% for this year, and to 1.4% from 1.5% for next year.

"Growth in Europe is holding up despite a more difficult global environment. There are signs that policy efforts are gradually delivering more jobs and supporting investment. But we have much more to do to tackle inequality," Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said.

"The recovery in the euro area remains uneven, both between Member States and between the weakest and the strongest in society," he added.