The eurozone will suffer another recession this year, albeit a "mild" one, according to the latest projections by the European Commission.

Greece is expected to lead the way with a massive 4.4 percent decline.

The economies of Belgium, Spain, Italy, Cyprus, the Netherlands, and Slovenia are also expected to contract in 2012.

But the commission said that while economic growth has stalled, there are signs of a stabilizing European economy and the stress on financial markets is easing.

"With decisive action, we can turn the corner and move from stabilization to boosting growth and jobs," Commission Vice President Olli Rehn said.