TEPID GROWTH: Europe's economy will continue to recover through next year, but at a subdued pace that will leave unemployment near record highs, the European Commission said Tuesday.

TEPID GROWTH: Europe's economy will continue to recover through next year, but at a subdued pace that will leave unemployment near record highs, the European Commission said Tuesday.

AUSTERITY SLOWS: The Commission, the EU's executive arm, said rising business confidence and strengthening domestic demand are expected to underpin the recovery as governments also slow the pace of austerity measures such as spending cuts and tax increases.

STUBBORN UNEMPLOYMENT: But unemployment in the eurozone is expected to remain at its record high of 12.2 percent this and next year, dropping only modestly to 11.8 percent in 2015.