Rehn very reserved about growth in Eurozone

Olli Rehn, Vice-President of the European Commission in charge of Economic and Monetary Affairs and the Euro, participated in the 2013 Euro Summit. The Vice-President made a speech entitled "Consolidating the return to growth" on this occasion. (EC Audiovisual Services, 03/12/2013).

Olli Rehn, Vice-President of the European Commission in charge of Economic and Monetary Affairs and the Euro, participated in the 2013 Euro Summit. The Vice-President made a speech entitled “Consolidating the return to growth” on this occasion. (EC Audiovisual Services, 03/12/2013).

 

Yesterday, Olli Rehn, the Vice-President of the European Commission responsible for Economic and Monetary Affairs and the Euro delivered a speech in the European Parliament, entitled “The recovery of the European economy”. In doing that, he couldn’t resist the temptation to reveal the truth that the recovery of the European economy which timidly appeared in the second quarter of this year, is now faltering. To this effect he said, “Since the summer, we have been seeing an economic turnaround in Europe, albeit a tentative one at this stage”.

This is a clear indication that the Commissioner, having more and accurate information than anybody else, authentically estimates  that the weak 0.3% rise of GDP during the second quarter of 2013, fades away during the year. Rehn explained that, “In Europe overall, growth turned positive in the second quarter of this year and this was confirmed for the third quarter “. Translating this ‘oracle’ one could safely deduce that the simple confirmation of the GDP rise in the third quarter cannot exceed the 0.3% of the second quarter and can very well be less than that, remaining however in positive part of the chart.

Soothing the markets

Of course Rehn could not leave the markets wondering about the future. In view of that, he felt obliged to express optimism about Eurozone’s prospects. Policy makers must always be sanguine otherwise everybody will start betting short on everything. That’s why he added, “We expect the recovery to gather strength next year and further in 2015”.

According to the current wisdom, this gathering of strength next year will be something around 1%, most probably below it. As for 2015, while making long-term predictions under the current uncertainties, one can practically say whatever one wants. Then Rehn concluded “Grosso modo, both reports forecast a similar economic scenario of a gradual recovery, which should provide for common ground on policies”. The two reports mentioned by the Commissioner are the two Annual Growth Surveys, one published recently by the Commission and the other presented on that occasion in the Parliament, by the organisation of “Progressive Friends”.

Reserved on growth

The weakness of growth as predicted by Rehn was also confirmed  at the end of his speech. He said “The latest economic indicators confirm that our economic strategy is paving the way for a sustained recovery. As I said, they should be seen as an encouragement to stay the course of economic reform”. Right or wrong, the economic strategy followed by the European Commission, a policy line trailed broadly by the speaker himself, had to be justified.

Despite the obligation, though, to justify the policies followed so far and planned to continue along the same lines, Rehn was again very restricted about the growth prospects. By saying that “indicators…confirm…the strategy paves the way for sustained recovery”, he very cleverly avoided the word ‘growth’. All in all there is no doubt that Rehn appeared very reserved in predicting growth. A one or two decimal points of a percentage unit increase in GDP would be a parody of growth…and a tragedy of prediction.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

CDNIFY @ TheNextWeb 2014

EU Council approves visa-free travel for Ukraine and cement ties with Kiev

Refugee crisis update: Commission is struggling alone with little help from EU or G7 leaders

This is how people in Europe are helping lead the energy charge

Quality Internships: Towards a Toolkit for Employers

Malta and Slovakia: serious shortcomings in the rule of law

This robot has soft hands. It could be the future of sustainable production

Love unlimited

Banking package: Parliament and Council reach an agreement

Defence: European Commission paves the way for first joint industrial projects under EU budget

The anti-vaccine movement shows the peril of a post-truth world

Everything you need to know about water

Reform of road use charges to spur cleaner transport and ensure fairness

Protests, violence in Haiti prompts international call for ‘realistic and lasting solutions’ to crisis

It’s time to fulfil the promises made to women 25 years ago

JADE Spring Meeting 2016 highlights

The JADE Spring Meeting is about to begin

European Youth Event 2016 – bridge between youth and policy makers

Contact the Sting

China in My Suburbs

World Population Day: ‘A matter of human rights’ says UN

Cybersecurity needs a holistic approach. Here are three ways to build protection

A Sting Exclusive: “Junior Enterprises themselves carry out projects focusing on the environment”, JADE President Daniela Runchi highlights from Brussels

European Commission reacts to the US restrictions on steel and aluminium affecting the EU

Turkey presents a new strategy for EU accession but foreign policy could be the lucky card

Why carbon capture could be the game-changer the world needs

How telehealth can get healthcare to more people

Two days left until General Data Protection Regulation (GDPR), lots of newsletter opt-outs but does the EU citizen really know?

Can the world take the risk of a new financial armageddon so that IMF doesn’t lose face towards Tsipras?

From glass ceiling to glass cliff: women are not a leadership quick-fix

MEPs vote to limit negative impact of no-deal Brexit on citizens

How tomorrow’s buildings will make you – and the planet – healthier

Mainland Europe adopts Germanic cartel business patterns

UN nuclear watchdog will help verify DPRK nuclear programme, if agreement forthcoming

FROM THE FIELD: How the smell of fresh bread transformed one refugee life

Economic sentiment and business climate stagnate in miserable euro area

The EU Commission lets money market funds continue the unholy game of banks

The power of digital tools to transform mental healthcare

“The Belt and Road Initiative should be mutually beneficial for EU and China and every participating country”, Vice-President Papadimoulis of the European Parliament underscores from European Business Summit 2018

EU unveils plan to accelerate Capital Markets Union ahead of London’s departure from the bloc

Drugs cost too much. There is a better way to fund medical innovation

Make progress or risk redundancy, UN chief warns world disarmament body

Is there a way out of the next financial crisis? Can more printed money or austerity save us all?

Here’s what a Korean boy band can teach us about globalization 4.0

Blockchain can change the face of renewable energy in Africa. Here’s how

From inconvenience to opportunity: the importance of international medical exchanges

Promoting rule of law and fundamental rights in the EU

How can we regulate disruptive technologies?

Parliament backs a modernised EU electoral law

Supercomputing could solve the world’s problems, and create many more

Globally, youth are the largest poverty-stricken group, says new UN report

Risks rising in corporate debt market

Amazon indigenous groups want to create a nature sanctuary the size of Mexico

Unlock the value proposition for Connected Insurance

Managing and resolving conflicts in a politically inclined group of team members

EU budget: Stepping up the EU’s role as a security and defence provider

Mali: UN chief calls for calm as clashes leave over 20 dead in Mopti

Is Erdogan losing game and match within and without Turkey?

The Council unblocks all EU budgets

Italy’s revised budget remains roughly unchanged waiting for Europe’s fury

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s