EU growth in 2015 to be again sluggish; Can the Juncker Commission fight this out?

Jean-Claude Juncker, President of the EC, gave a press conference on the conclusions of the first weekly meeting of the Juncker Commission which was held on the same day (EC Audivisual Services, 05/11/2014)

Jean-Claude Juncker, President of the EC, gave a press conference on the conclusions of the first weekly meeting of the Juncker Commission which was held on the same day (EC Audivisual Services, 05/11/2014)

It was last Tuesday when the European Commission (EC) met in Brussels to talk about the 2014 autumn economic forecast. Among others, the discussion was mainly about the sluggish growth and inflation, the impact of geopolitical crises in the EU economy as well as the significant economic performance of Ireland. Wrong growth forecasts The EC stated that the EU’s growth rate will be 0.8 percent this year, deviating by 0.4 percent (1.2%) compared to May’s forecast. Also, the annual GDP growth forecast for 2014 is decreased to 1.3 percent. More specifically, a narrow-down analysis in a country level demonstrates that GDP evolution in Italy, Croatia and Finland will be negative. France, the second biggest EU economy is about to grow at a very low pace (0.3%) whereas Germany, the Netherlands and Spain will grow at a significant level. United Kingdom and Poland will be among the countries that greatly contribute in GDP growth terms reaching 3.1% and 3.0%, respectively. According to the EC’s officials, those differences are due to country-specific factors which are pushing down the growth rate in Europe. The vice president of the EC, Jyrki Katainen who is responsible for Jobs, Growth, Investment and Competitiveness stated: “Such factors include the deep-seated structural problems that were already well-known before the crisis, the public and private debt overhang; ongoing financial fragmentation related to the sovereign debt crisis.” Geopolitical crises and growth Another issue that the EU has to take into consideration is the geopolitical crises in Ukraine and the Middle East. The European Commissioner for Economic and Financial Affairs Pierre Moscovici mentioned that there are still several risks for EU growth because of the geopolitical tensions. If further sanctions are to be imposed by the U.S. and EU to Russia and vice versa then the EC’s growth forecasts will not be materialized; thus causing a negative impact on domestic demand through bad EU confidence. Ireland: a top growth performer Ireland is predicted by the EC to be the country with the fastest growth pace, reaching 4.6 percent in 2014. In particular, Jyrki Katainen mentioned that Ireland is “coming back” by implementing all the necessary measures in order to provide confidence to private investors who will create more jobs and increase growth prospects. Furthermore, the GDP growth rate will be 3.6 percent in 2015, a 0.6 percent increase compared to the last forecast six months ago. All in all, these facts support the view that Ireland is one of the most promising markets of the EU. Thinking about the horrible crisis that this country has suffered, this is truly unexpectedly pleasant. Low inflation persists The inflation outlook is expected to reach approximately 0.5 percent in 2014, 0.8 percent in 2015 and 1.5 percent in 2016. The very low inflation regarded this year is because of the downslope of the oil prices, the bad economic environment and euro’s appreciation. These events are going to continue till the end of the year but the EC’s officials claim that this trend will eventually alter in the next few years forcing inflation to increase due to euro depreciation, improvement of the economic environment and lower impact that the changes of the commodity prices would have on inflation. However, we should be a bit skeptical because the EU forecasts have been refuted in the past. Therefore, we have to wait and see if the commodity prices will not greatly affect inflation and whether the EU economic outlook will ameliorate in the next years. How to deal with growth? The euro area economy will grow by 1.1 percent next year. This is way below (1.7%) the previous predictions. Apart from structural reforms, investment is required. One solution that is proposed by the EC and will help in this direction is Junker’s investment programme of 300 billion euros. Even though it seems that it will have a significant effect on the EU economy, I would not not rush to hasty conclusions at this moment but wait till the end of the year, when further details will be announced, in order to judge it more properly.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© UNICEF/Azizullah Karimi Afghan returnees from Iran gather at the Islam-Border, near Herat in western Afghanistan (file).

‘Toxic rain’ warning from oil depot strikes amid ongoing Middle East war

This article is published in association with United Nations. Toxic “black rain” linked to strikes on oil depots, mass displacement and continuing disruption to aid supply chains are upending lives across the Middle East and beyond after 10 days of war in the region, UN humanitarians said on Tuesday.  Speaking to reporters in Geneva, UN Human […]
© UNHCR People gather at the Masnaa border point in Lebanon as they wait to cross into Syria.

Nearly 700,000 displaced in Lebanon as Middle East crisis escalates

This article is published in association with United Nations. On day 10 of the war engulfing the Middle East, UN agencies on Monday reported massive displacement across the region, along with surging food and fuel prices that risk increasing hunger and suffering for the most vulnerable. In Lebanon alone, nearly 700,000 people including around 200,000 children […]
UN Photo/Pasqual Gorriz Smoke rises in Beirut, Lebanon, following the outbreak of hostilities across the Middle East.

Lebanon ‘dragged back into turmoil’, UN envoy warns

This article is published in association with United Nations. Lebanon has been “dragged back into a state of turmoil and violence”, the UN’s top envoy in the country warned on Saturday, after the latest round of regional strikes triggered a fast‑escalating crisis along the Blue Line. What had been fragile but real momentum, she said, has […]
UNHCR Smoke rises after an airstrike in Beirut, Lebanon.

MIDDLE EAST LIVE: Strikes continue across Middle East as humanitarian concerns grow

This article is published in association with United Nations. Highlights Production team: Vibhu Mishra with Daniel Johnson in GenevaToday 12:15 μ.μ. UN rights office warns displacement orders in Lebanon affecting hundreds of thousands The UN human rights office has warned that large-scale displacement orders and ongoing airstrikes in Lebanon are worsening the suffering of civilians already affected […]
© UNICEF/Ramzi Haidar Destroyed buildings and debris in the southern suburbs of Beirut, Lebanon, following airstrikes.

MIDDLE EAST LIVE: Further escalation drives uncertainty and suffering

This article is published in association with United Nations. On day six of the war in the Middle East, there’s been no let-up in bombs, drones and rockets targeting Iran, Israel, Lebanon and many Gulf States, while NATO forces reportedly intercepted a missile fired at Türkiye by Iran, a claim denied by Tehran. We’ll bring you […]
UN Photo/Pasqual Gorriz Smoke rises in Beirut, Lebanon, following the outbreak of hostilities across the Middle East.

MIDDLE EAST LIVE: Conflict continues across region amid US, Israeli and Iranian strikes

This article is published in association with United Nations. Violence in the Middle East is continuing into a fifth day, with US and Israeli strikes against Iran and Iranian missile and drone attacks reported across several countries in the region. The escalating confrontation is disrupting airspace, transport and daily life while raising fears of a wider […]
© IAEA/Paolo Contri The Bushehr Nuclear Power Plant in Iran.

Iran crisis: Schoolgirls killed, thousands displaced and aid compromised

This article is published in association with United Nations. On the fourth day of Israeli and United States airstrikes against Iran and amid growing violence and instability in the Middle East, the UN urgently called for protection of civilians and warned of growing displacement and humanitarian needs. UN human rights office spokesperson Ravina Shamdasani also recalled […]
© Unsplash/Kamran Gholami Tehran, the capital of Iran. (file photo)

MIDDLE EAST LIVE: Strikes continue from US, Israel and Iran as UN urges restraint

This article is published in association with United Nations. Violent escalation in the Middle East has entered a third day as coordinated US and Israeli strikes against Iran aimed at regime change continue to cause loss of life and damage across the region, prompting Iranian missile and drone counter-strikes hitting targets in multiple countries. Explosions, airspace […]
Iran attacks

Deadly bombing of Iran primary school ‘a grave violation of humanitarian law’: UNESCO

This article is published in association with United Nations. The UN education agency, UNESCO, says that the bombing of a primary school during the US and Israeli military attacks on Iran on Saturday constitutes a grave violation of humanitarian law. The missiles reportedly destroyed a girl’s primary school in Minab, southern Iran, killing around 150 and […]
© UNRCO Iran Tehran, the capital of Iran.

Attacks on Iran and retaliatory strikes ‘undermine international peace and security’

This article is published in association with United Nations. UN Secretary-General António Guterres and the heads of UN agencies have condemned Saturday’s joint Israeli and US attacks on Iran and the Iranian retaliatory strikes on Israel and the Gulf Regions. The attack on Iran reportedly targeted military sites as well as the leadership of the Iranian […]
© WFP/Maxime Le Lijour A woman holds a child as a storm approaches Khan Younis in Gaza.

Palestine: UN rights chief highlights suffering, atrocity crimes ‘that remain unpunished

This article is published in association with United Nations. The UN rights chief Volker Türk on Thursday highlighted the “human-made disaster” across the Occupied Palestinian Territory stemming from Israel’s disregard for human rights norms and serious violations also committed by Hamas and other Palestinian armed groups. Citing a new report from his office (OHCHR) covering the […]
Ángela Soria Pitarch was born on March 28, 2003. She is currently a fifth-year medical student at the University of Valencia.

Not the Future, the Present: Young Voices Shaping Global Health in 2026

This article was exclusively written for The European Sting by Ms. Ángela Soria Pitarch was born on March 28, 2003. She is currently a fifth-year medical student at the University of Valencia. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to […]
© UNOCHA Many rural areas of Ukraine have been blasted by shelling and drone strikes. The country is also one of the most mined in the world, top UN aid officials warn.

Ukraine wakes to more violence as Russia’s invasion enters fifth year

This article is published in association with United Nations. The full-scale invasion of Ukraine by Russian troops on 24 February 2022 shattered the peaceful aspirations of an entire continent, but war must never be the new normal, UN General Assembly President Annalena Baerbock said on Tuesday. “Four years ago, people in Europe woke up in another […]
Fokah Wembe Darrell Dupray is a 4th-year medical student at Université des Montagnes, Bangangté Cameroon and a student leader within the Cameroon Medical Students’ Association (CAMSA).

From Local Barriers to Global Lessons: Practical Paths Toward Inclusive Healthcare

This article was exclusively written for The European Sting by Ms. Zainatun Nawwariyah is a fifth-year medical student at the Faculty of Medicine, University of North Sumatera, who is passionate about advancing medicine through research, advocacy, and service. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed […]
© UNICEF/Bullen Chol A grandmother takes care of her 17-month-old malnourished grandson in South Sudan.

World News in Brief: UN humanitarian chief visits South Sudan, shelter fire risks in Gaza, West Bank violence

This article is published in association with United Nations. The UN Emergency Relief Coordinator arrived in South Sudan on Friday to visit one of the most under-reported humanitarian crises in the world, as clashes between government and opposition forces continue in Jonglei state.  Tom Fletcher will focus on the deteriorating humanitarian situation in the world’s youngest country and escalating protection risks for both civilians and aid workers.  […]
Ukraine’s women at breaking point after four years of war as attacks on energy, healthcare continue – UN humanitarians

Ukraine’s women at breaking point after four years of war as attacks on energy, healthcare continue – UN humanitarians

This article is published in association with United Nations. Four years into Russia’s full-scale invasion, millions in Ukraine struggle to keep the lights on and heat their homes, with the crisis taking a particular toll on women, humanitarians warned on Friday. Freshly back from a visit to the country UN Women’s Chief of Humanitarian Action Sofia […]
Fears of ethnic cleansing in Gaza and the West Bank: UN rights report

Fears of ethnic cleansing in Gaza and the West Bank: UN rights report

This article is published in association with United Nations. Increased Israeli attacks and the forced transfer of Palestinians have sparked concern over ethnic cleansing in the Gaza Strip and the West Bank, the UN human rights office, OHCHR, said in a report issued on Thursday.  The report covers the period from 1 November 2024 to 31 October 2025 and is […]
Samaya Rahimova  is a public health student at the Azerbaijan Medical University and an active member of SCOPH at Azermeds

Inclusive Healthcare Fails When We Design for the “Average Patient”

This article was exclusively written for The European Sting by Ms. Samaya Rahimova , a public health student at the Azerbaijan Medical University and an active member of SCOPH at Azermeds. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer […]
IOM Women make up the majority of victims of human trafficking for sexual exploitation. (file photo)

Epstein files: ‘No one is too wealthy or too powerful to be above the law’; rights experts demand accountability

This article is published in association with United Nations. The large-scale disclosure of materials known as the “Epstein Files” has revealed “disturbing and credible evidence” of what independent human rights experts describe as a possible global criminal enterprise involving systematic sexual abuse, trafficking and exploitation of women and girls. In a statement on Monday, the independent […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com