"One of the main factors working in the EU's favour is the price of oil, which remains exceptionally low, even after having bounced back since the winter," the European Commission said in its report.
"At the same time, the effective exchange rate of the euro has continued to fall, boosting firms' competitiveness and profit margins."
Among other good euro zone data, Spain's national statistics office said on Tuesday that the number of Spaniards registered as jobless fell 2.7 percent last month from March – the steepest fall in the month of April on record.
Data last week showed unemployment in Germany, Europe's biggest economy, fell in April to its lowest level in 24 years, while the euro zone emerged last month from four months of deflation.
"The good news is that the growth outlook for the euro zone as a whole has improved markedly of late - and looks all the more promising given the recent weakness of the U.S. economy," Nicholas Spiro, managing director at Spiro Sovereign Strategy in London, told CNBC on Tuesday.
"The bad news is that the vulnerabilities and weaknesses in the euro zone remain the same: A persistent lack of growth in France and Italy, dangerously high levels of unemployment and public debt and an escalating Greek crisis with potentially dire consequences for the bloc as a whole," he said .
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