The European Commission is warning that the recent spike in COVID-19 cases could hold back Europe's economic recovery from the pandemic. 

"The European economy is growing strongly but being buffeted by headwinds: sharply increasing COVID cases, spiking inflation and ongoing supply-chain issues," said Paolo Gentiloni, the European commissioner for economy. 

Officials launched the European Semester Autumn Package in Brussels on Wednesday, a set of proposals for the bloc's economic policy coordination.

This month, member states including the Netherlands, Austria and Belgium have brought back coronavirus restrictions as case numbers surge across the continent. The Austrian government enforced the strictest measures, bringing in a full national lockdown and a vaccine mandate, which comes into force in February. 

As restrictions are reintroduced, violent protests have broken out in several European cities including Rotterdam, Brussels and Vienna. 

Meanwhile, inflation in the eurozone surged to more than 4 percent in October, driven by rising energy prices that are hitting consumers in the pocket this winter.

Snarled supply chains are also continuing to hit companies of all sizes, including car companies struggling to get hold of crucial semiconductors. 

However, even as they warned about new headwinds, European officials insisted coronavirus restrictions aren't a threat to the bloc's long-term economic recovery. 

"To be clear, we do not expect them to have anything like the same impact on economic activity as the lockdowns of last winter," said Gentiloni. 

The EU's Recovery and Resilience Facility (RRF) has a budget of more than $750 billion to provide loans and grants for member states. Despite the sudden return of lockdowns, the EU is also telling national governments they should move into a new phase. 

"As we shift gear from crisis management towards growth-friendly investments for the future, the priority now is to put the right reforms and investments into place for Europe to stage an inclusive, lasting and sustainable recovery," said the European Commission's Valdis Dombrovskis. 

He also highlighted high debt levels in Belgium, France, Greece, Italy and Spain, warning the countries' governments to maintain "sustainable public finances." 

The EU is forecast to achieve 5 percent GDP growth this year and 4.3 percent in 2022.