Has the EU economy truly revived from the financial crisis?

Press statement by Pierre Moscovici, Member of the EC
Date: 12/07/2017 Location: Brussels – EC/Berlaymont
© European Union , 2017. Source: EC – Audiovisual Service. Photo: Jennifer Jacquemart

Last week the European Commission published a press release regarding EU’s recovery from the financial crisis where it is mentioned that the EU, after 10 years since that start of the crisis, is back to growth because of the EU influential actions.

What is more, it was announced yesterday that Germany’s gross domestic product in the second quarter grew 0.6% over the previous quarter. The Federal Statistics Office specifically said that the GDP growth followed a revised of 0.7% growth in the first quarter, according to figures adjusted for seasonal and calendar variations.

However, there are more challenges for the EU economy as Brexit has not yet shown its impact and consequences to the real economy.

EU’s growth rebounds

The EC has been supporting that the EU is stronger compared to ten years ago when the financial crisis began and is showing great improvement. More specifically, Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, said last Wednesday: “Thanks to the determined policy response to the crisis the EU economy is now firmly recovering and the Economic and Monetary Union is stronger than before. We need to build on this progress, completing the financial union, reforming our economies to foster convergence, inclusiveness and resilience, and maintaining sustainable public finances. In doing so, we should pursue a balanced approach where risk reduction and risk sharing go hand-in-hand and the unity of the single market is preserved.”

Furthermore, Commissioner Pierre Moscovici, responsible for Economic Affairs, Taxation and Customs, mentioned that the economic growth of the EU has been intense but we must continue with the completion of the Union. In detail, Commissioner Pierre Moscovici said: “Ten years after the global crisis began, the recovery of the European economy has firmed and broadened. We must use this positive momentum to complete the reform of our Economic and Monetary Union. Not all legacies from the past correct automatically. We have seen greater social and economic divergences develop in and among Member States. It is essential that our work going forward contributes to the real and sustained convergence of our economies.”

The EU is thus showing recovery signs as business and consumer confidence has increased and Eurozone’s unemployment rate has reduced to 9,1%; 2,9% lower compared to the levels during the financial crisis. The main fall has been occurred in Spain and Germany while Italy and France still suffer from higher unemployment rates.

Germany’s share

Germany confirms her title once more as the largest EU economy as the statistics office showed that the economy expanded by 0,6% in the second quarter. Growth was driven by domestic demand while consumers and the government kept on spending. In addition, imports rose to a great extent and investment in equipment and construction contributed to the positive outcome.

The International Monetary Fund (IMF) also stated that: “Employment growth is strong, the unemployment rate is at a record low, output growth is above potential and the fiscal position keeps strengthening”. Therefore, Germany is definitely contributing to the revival of the EU economy while Angela Merkel is becoming even more popular and increases her chances of being reelected for fourth consecutive term in the next German elections taking place in September.

Will the EU economy continue growing?

As the gross domestic product in the 19-country euro currency zone grew by 0.6% in the three months to June, expectations are increasing regarding the fact that the ECB will reduce the pace of the QE programme. The future of the programme is most likely to be revealed by the president of the ECB in September.

All in all, the EU economy has revealed positive growth figures during the first half of the year and seems to continue at the same pace at the rest of 2017. However, it is imperative for the EU to become more solid in order to be able to deal with crises like the one occurred ten years ago and also manage critical issues such as Brexit which could influence the EU altering the positive growth perspective.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

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

EntEx Organises 5 Summer Schools for Young Entrepreneurs across Europe in June/July 2014

Denmark’s last circus elephants are retiring – here’s what might take their place

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

‘Comprehensively include migrants’ or sustainable development won’t happen, warns General Assembly President

Towards a European Republic

Is Britain to sail alone in the high seas of trade wars?

This is the world’s biggest mental health problem – and you might not have heard of it

Last-chance Commission: Why Juncker promised investments of €300 billion?

Tobacco is harming the planet, not just our health, says new study

WHO and UNICEF in campaign to protect 1.6 million in Sudan from cholera

The three US financial war fleets

Online government services could change your life. But only if you have access to the internet

Parallel downfalls of Merkel and Deutsche Bank threaten Germany and Europe

Amid ‘volatile’ environment, UN mission chief urges Iraqi leaders to ‘listen to the voice of the people’

“As long as we work together through thick and thin, more benefits can be delivered to the people of Eurasia”, China’s Premier Li Keqiang highlights from ASEM in Brussels

Eurozone 2013: Where to?

Carnage must stop in northwest Syria demands Lowcock, as attacks intensify

‘A trusted voice’ for social justice: Guterres celebrates 100 years of the International Labour Organization

Act now to end violence, Zeid urges Nicaraguan authorities

Netherlands: Budget MEPs back €1.2m in job-search aid for 450 redundant workers

Four in 10 indigenous languages at risk of disappearing, warn UN human rights experts

Health Education, is it a necessity?

After the Italian ‘no’ and the Brexit, Germans must decide which Europe they want

Here are the biggest cybercrime trends of 2019

Peace in the Gulf ‘at a critical juncture’ says DiCarlo, urging continuation of Iran nuclear deal

In the age of the tourism backlash, we need ‘destination stewards’

Traditional finance is failing millennials. Here’s how investing needs to change

World Migratory Bird Day highlights deadly risks of plastic pollution

Online shopping across the EU to be easier from 3 December

Force used against protestors in Gaza ‘wholly disproportionate’ says UN human rights chief

COP24 negotiations: Why reaching agreement on climate action is so complex

EU-US trade talks go ahead despite Prism and civil rights breach

Low quality healthcare is increasing the burden of illness and health costs globally

How music can help children with autism connect

Parliament votes for €1 billion in aid to Ukraine

5 things you need to know about water

Top UN officials strongly condemn ‘horrible terrorist act’ in Nairobi

Hungary has made progress on greening its economy and now needs to raise its ambitions

IMF’s Lagarde indirectly cautioned Eurozone on deflation

Bankruptcy or referendum: which one is going to be first?

10th ASEM in Milan and the importance of being one: EU’s big challenge on the way to China

Impact of high debt levels on least developed countries ‘cannot be overstated’, says UN

Food safety: New rules to boost consumer trust approved by MEPs

What just happened? 5 themes from the COP24 climate talks in Poland

Tuesday’s Daily Brief: #GlobalGoals progress, essential meds, updates from Cox’s Bazar, Sudan and DR Congo

Saudi Arabia: UN experts push for prompt release of women human rights defenders

FROM THE FIELD: A mountain of indigenous knowledge in Peru

Cheap sea transport with low cost seafarers

A European Discovers China: 3 First Impressions

As inequality grows, the UN fights for a fairer world

After Brexit and Grexit, Brussels to deal with Poloust

The Energy Union: from vision to reality

Impact investment favours expats over African entrepreneurs. Here’s how to fix that

US resolution to condemn activities of Hamas voted down in General Assembly

Europe faces economic turmoil as Italy gets closer to the Excessive Debt Procedure

We are ‘burning up our future’, UN’s Bachelet tells Human Rights Council

Why vaccines are not just for children

3 ways firms can master the digital challenges of the 4IR

How Islamic finance can build resilience to climate change

Youth platforms call on German Government to break down legal barriers for young volunteers and pupils

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