Rough economic road ahead for euro zone, EU leader says

Two additional euro zone nations will continue enduring significant pressure this year as the economy of Europe will contract, according to the European Commission.

During the same week that Greece gained final approval for its second tranche of bailout aid since June 2010, the administrative body said Italy and Spain will continuing suffering and attempt to ward off threats posed by the sovereign debt crisis, according to Bloomberg. The economy of the euro zone will shrink 0.3 percent, which represents a stark reversal from the 0.5 percent growth projected in November.

"The euro area has entered into a mild recession," Economic and Monetary Commissioner Olli Rehn with the European Union told reporters in Brussels on Thursday. "Prospects have worsened and risks to the growth outlook do remain, but there are signs of stabilization."

Analysts, investors and additional observers have been fearful of additional nations being snared by the debt crisis, with an emphasis on Spain and Italy. Their contractions are projected to be 1 and 1.3 percent, respectively.

Dow Jones Newswires reports Rehn also noted countries in the euro zone should adhere to fiscal consolidation programs despite the imminent recession.