The eurozone emerged from an 18-month recession in the second quarter on the back of rebounding economies in Germany and France, prompting Brussels to argue that a combination of austerity and structural reform was starting to bear fruit.

The 17-nation euro area expanded by 0.3 per cent from April to June, ending the longest contraction since its creation in 1999. Germany grew by 0.7 per cent, led by robust manufacturing output and consumer spending, while France beat expectations by ending its double-dip recession with growth of 0.5 per cent.

“The data?.?.?.?supports, in my view, the fundamentals of our crisis response: a policy mix where building a stability culture and pursuing structural reforms supportive of growth and jobs go hand in hand,” said Olli Rehn, European commissioner for economic affairs.