LUXEMBOURG (AFX) - The European Commission expects GDP growth this year in both the euro zone and EU to be "clearly below 2 pct but clearly above 1 pct," economic and monetary affairs commissioner Pedro Solbes said. Solbes has previously said merely that GDP growth this year would be "above" 1 pct, though "clearly below 2 pct." He told a news conference after last night's eurogroup meeting that the EU economy is free of major imbalances and the existence of the euro has proved " a major factor of stability". "Contrary to the US, private households are not highly indebted and over-investment in technology was more contained. Inflation is falling," he said. "Against this background, private consumption could pick up, helped by the implemented tax cuts. One should keep in mind that even before the Sept 11 events, the EU fiscal policy was expansionary and the structural deficit of the euro area was set to rise by 0.3 pct of GDP." "Several member states implemented substantial tax cuts in early 2001, amounting to 0.5 pct of GDP for the EU as a whole," he said.