The euro zone economy is likely to shrink between 8 per cent and 12 per cent this year as it struggles to overcome the impact of the coronavirus pandemic, European Central Bank President Christine Lagarde said on Wednesday. The ECB earlier said the economy could shrink by between 5 per cent and 12 per cent, but speaking in a youth dialogue, Lagarde said that the "mild" scenario is already outdated and the actual outcome would be between the "medium and "severe" scenarios, Reuters reported. In another major development, the European Union's executive proposed a 750 billion-euro ($825 billion) recovery fund to help the bloc's economy through the deep recession induced by the coronavirus pandemic, commissioner Paolo Gentiloni said on Wednesday. Gentiloni, who is in charge of economic affairs at the commission, wrote in a tweet that the move is a European turning point to face an unprecedented crisis.