EU Commission: Economic Forecast. Gentiloni, “recession avoided, but still much to do. Need to implement NRRPs”

“The EU avoided a recession last winter – no mean feat given the magnitude of the shocks that we have faced”, Commissioner Paolo Gentiloni remarked as he presented the EU Economic Forecast at a press conference. “This resilience, most evident in the strength of the labour market, is a testimony to the effectiveness of our common policy response. However, the multiple headwinds facing our economies this year have led to a weaker growth momentum than we projected in the spring”. Commissioner Gentiloni explained that “inflation is declining, but at differing speeds across the EU. And Russia’s brutal war against Ukraine continues to cause not only human suffering but economic disruption. Yet we must have trust and confidence in the future of the European economy. There is much that we can do to support sustained and sustainable growth. The effective implementation of National Recovery and Resilience Plans remains a key priority. Prudent, investment-friendly fiscal policies should be pursued, in sync with the ongoing efforts of our central banks to tame inflation. Lastly, we must work with determination to conclude an agreement on the reform of our fiscal rules by the end of the year”.
Valentina Bombelli