EU Commission cuts Euro-Zone growth forecast to -4.0%, with growth expected to contract 0.1% next year. German GDP is seen at -5.4% this year and 0.3% next, while French GDP is seen down 3% this year and 0.2% next. Italian GDP is expected to contract 4.4% this year and rise 0.1% next. At the same time the Commission expects inflation to fall to just 0.4% this year and 1.2% next, while unemployment is expected to reach a staggering 11.5% next year. Slowing growth and rising social security costs will lift the deficit to GDP ratio for the whole of the Euro-Zone to 5.3% this year and 6.5% in 2010, according to the forecast, with all major Euro-Zone countries seen in breach of the 3% limit laid down in the Stability and Growth Pact.