German chancellor Angela Merkel said in a speech in parliament today that the euro zone could generate stronger growth this year than the 1.2 per cent forecast by the European Commission.

"The commission expects growth of about 1.2 per cent in 2014, which is somewhat better than what was forecast in the autumn," she said, referring to its forecast the eurozone as opposed to the wider European Union, for which it sees 1.5 per cent growth.

“But we know that we can do better than 1.2 per cent,” the chancellor told parliament in a speech. (Reuters)