Eurozone chief says economy will grow 1% this year

The eurozone economy will only grow around 1% this year, according to the head of the single currency block.

Last year, the eurozone economy contracted by 4% - its biggest drop since the single currency came into existence.

But Jean-Claude Juncker, head of the eurozone and Luxembourg's prime minister, warned although there would be growth this year it would be fragile.

His forecast comes in the wake of the 16-nation block being hit hard by the fallout from Greece's economic woes.

In a sign the eurozone is hardening its stance towards the heavily-indebted nation, Juncker told a German radio station the country must make cuts or face sanctions.

Yesterday, Greece called on eurozone nations to clarify details of a bail out - pledged last week at a meeting of leaders - amid fears the country could default on its debt.

The euro has plunged to a nine-month low recently on the back of Greece's troubles.