The European Commission on Thursday cut its eurozone 2016 growth forecast to 1.7 percent from 1.8 percent, warning that the slowdown in China and increased global turmoil cloud the outlook.

"Risks to the economy are becoming more pronounced and new challenges are surfacing -- slower growth in China and other emerging market economies, weak global trade as well as geopolitical and policy-related uncertainty," the Commission said in its Winter economic forecast.