It is not a matter of simply pulling a switch that turns on the lights. In politics, in late November Eurozone finance ministers reached a deal to revamp the bloc’s bailout fund to provide extra cash for failing banks, starting in 2022. Political situation. The IMF estimates that the global economy shrunk by 4.4% in 2020. The organisation described the decline as the worst since the Great Depression of the 1930s. that ambitious programmes like the European Green Deal will hinder economic recovery after the crisis, the European Commission and others maintain that the European GreenDeal is the growth strategy that can help Europe's economic recovery while at the same time addressing the global climate emergency. Around the world, governments are starting to think about how to reopen the economy once the virus is suppressed. The day of reckoning has now come for the Italian economic crisis, worsened by the Covid-19 pandemic and the related lockdown. Three of the largest nations in the union report below average growth. Client Log In, Facebook … The UK and EU have moved to calm tensions over access to coronavirus jabs. The Commission’s Spring 2020 economic forecast suggests that real GDP in 2020 will fall by 7.4% in the EU, with only a partial recovery of 6.1% expected in 2021 (European Commission 2020a). Information about European economy. Google+, © Copyright: 2021. COVID-19 situation update for the EU/EEA, as of week 12, updated 1 April 2021 Data presented below are collected between Monday and Wednesday for the preceding week and published on Thursdays Disclaimer : National updates are published at different times and in different time zones. The reintroduction of restrictions due to rising Covid-19 cases left visible scars on the services sector and on consumer and business sentiment in November, while a lost Christmas season will further weigh on activity at the tail end of 2020. Vaccine tension, Suez blocked, Facebook espionage, Himalayan crisis . Ten years after the global financial crisis, Europe's economy has achieved a recovery, but not a revival. December 22, 2020. But if we are talking about the economic situation in Europe, then people are more optimistic. Detailed national accounts data revealed that Q3’s strong rebound in GDP was supported by both the domestic and external economy: Resuming business activity and unleashed pent-up consumer spending fueled domestic demand, while easing lockdowns abroad boosted exports. Updated November 16, 2020. The European Commission has threatened to ban exports to countries like Britain that have higher vaccination rates but do not export shots to the EU. Chancellor Helmut Kohl of Germany s… | Privacy Policy | Cookies Policy | Terms & Conditions | Sitemap | RSS feed, Spain: Composite PMI moves to expansionary terrain in March for first time in eight months, Cyprus: Consumer prices drop at milder pace in annual terms in March, Greece: Manufacturing PMI returns to expansionary terrain for the first time in over a year in March, Netherlands: PMI hits record-high in March, Ireland: Manufacturing PMI rises in March. Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Europe's most powerful economy has suffered from the coronavirus pandemic, having faced different waves of infections and subsequent lockdowns. As such, it can be argued to have had a major political impact on the ruling governments in 10 out of 19 eurozone countries, contributing to power shifts in … Analysing structural reforms and EU policies, Statement following the conclusion of the fifth post-programme surveillance mission to Ireland, Statement by the European Commission staff and the European Central Bank following the third post-programme surveillance mission to Portugal, 2014 AUTUMN FORECAST PRESS SPEAKING POINTS - Slow growth amidst very low inflation, More than 120 million persons at risk of poverty or social exclusion in 2013, Statement by the European Commission and the European Central Bank following the second post-programme surveillance mission to Spain, Preparation of Economic and Finance Ministers Council, Brussels, 14 October, GDP stable in the euro area and up by 0.2% in the EU28, Business Climate Indicator decreases marginally in July, July 2014: Economic Sentiment stable in the euro area, decreasing slightly in the EU, Statement by the European Commission, ECB and IMF on the Fifth Review Mission to Cyprus, State of the Innovation Union - Taking stock 2010 – 2014, Speaking points by Vice-President Olli Rehn on the 2014 Convergence Report, The 2014 Convergence Report and Lithuania: frequently asked questions on euro adoption, Commission takes steps under the Excessive Deficit Procedure (EDP), Business Climate Indicator increased slightly in May, May 2014: Economic Sentiment rises in the euro area, remains broadly stable in the EU, Volume of retail trade up by 0.3% in both euro area and EU28, Spring 2014 forecast: Growth becoming broader-based, Statement by Vice-President Siim Kallas on Portugal's decision regarding programme exit, Statement by the European Commission and the European Central Bank following the first post-programme surveillance mission to Ireland, Statement by the European Commission, ECB, and IMF on the Twelfth Review Mission to Portugal, Household saving rate stable at 13.0% in the euro area and down to 10.6% in the EU28, April 2014: Economic Sentiment slips in the euro area, rises further in the EU, Business Climate Indicator decreased slightly in April, April 2014: Flash Consumer Confidence Indicator, Support Group for Cyprus, first Activity Report: helping Cyprus pursue reforms and restore growth, March 2014: Economic Sentiment up in the euro area and broadly flat in the EU, Preparation of Economic and Finance Ministers Council, Brussels, 11 March, EU28 current account surplus 47.9 bn euro, Commission concludes in-depth reviews to identify macroeconomic imbalances and assesses progress in fiscal consolidation, Commission concludes in-depth reviews of 17 Member States to check for macroeconomic imbalances, February 2014: Economic Sentiment broadly unchanged in the euro area and the EU, Business Climate Indicator increased slightly in February, Speech: Speaking points by Vice-President Rehn at the press conference on the Winter Economic Forecasts, Winter 2014 forecast: Recovery gaining ground, February 2014: Flash Consumer Confidence Indicator, Euro area production in construction up by 0.9%, Energy consumption down by 8% between 2006 and 2012 in the EU28, Euro area GDP up by 0.3%, EU28 up by 0.4%, Industrial production down by 0.7% in euro area and in EU28, Statement by the European Commission, ECB and IMF on the Third Review Mission to Cyprus, Volume of retail trade down by 1.6% in euro area. It is the second largest economy in the world in nominal terms, after the United States, and the third one in purchasing power parity (PPP) terms, after China and the United States. Consumer prices rose 1.30% over the previous month in March, notably up from February’s 0.11% reading. The economy of the European Union is the joint economy of the member states of the European Union (EU). Industrial producer prices up by 0.2% in both euro area and EU28, Seasonally adjusted government deficit down to 3.1% of GDP in the euro area, January 2014: Economic Sentiment continues to improve in the euro area and the EU, Record level of 2.6 bn nights spent in tourist accommodation in the EU28 in 2013, Household saving rate nearly stable at 13.0% in the euro area and 10.7% in the EU28, Business investment rate down to 19.0% in the euro area and stable at 18.9% in the EU28, EU28 trade in goods deficit with Russia fell slightly to 66 bn euro in the first nine months of 2013, EU28 seasonally adjusted current account surplus 31.4 bn euro, Both inward and outward FDI stocks rose by around 40% between 2009 and 2012 for the EU, Euro area government debt down to 92.7% of GDP, EU28 up to 86.8% of GDP, Euro area production in construction down by 0.6%, Euro area international trade in goods surplus 17.1 bn euro, Industrial production up by 1.8% in euro area, December 2013: Economic Sentiment rises further in both the euro area and the EU, Volume of retail trade up by 1.4% in euro area, Industrial producer prices down by 0.1% in both euro area and EU28, VP Rehn’s comments to medias on Standard & Poor’s downgrading of EU from AAA (negative outlook) to AA+ (stable outlook), International Trade in Services: EU28 surplus up to 153 bn euro in 2012, Annual growth in labour costs nearly stable at 1.0% in both euro area and EU28, Social media used by 30% of enterprises in the EU28…, Euro area international trade in goods surplus 17.2 bn euro, Commission publishes Product Market Review 2013: Financing the real economy, EU28 real agricultural income per worker down by 1.3%, Statement by Vice President Rehn on the publication of results of stress tests of Slovenian banks, Most Member States had GDP per capita between 70% and 130% of the EU28 average, Croatia: Commission takes steps under the Excessive Deficit Procedure, Speech - The recovery of the European economy, Speech - Reform and recovery of the European and global economy, November 2013: Economic Sentiment improves in the euro area and the EU, Statement by the European Commission staff, ECB and IMF on Greece, Europe's budgetary surveillance moves into full gear, Statement by the EC, ECB and IMF on the Twelfth Review Mission to Ireland, Fourth Post-Programme Surveillance mission to Latvia by the Commission services, Statement by the European Commission, ECB and IMF on the Second Review Mission to Cyprus, Autumn Forecast: Gradual recovery, external risks, Autumn 2013 economic forecast: Gradual recovery, external risks, Romania: Statement of the European Commission and International Monetary Fund Staff Visit, October 2013: Economic Sentiment improves in the euro area and the EU, Speech - Statements following the EU-China High Level Economic and Trade Dialogue (HED), Statement by the European Commission, ECB and IMF on the eighth and ninth review mission to Portugal, Building Europe’s recovery, rebuilding its monetary union, Statement by the Commission staff, ECB and IMF on the Greek review mission, Speech - Press Speaking Points on the adoption Latvia's Convergence Report, Commission concludes that Latvia is ready to adopt euro in 2014, Statement by the EC and the ECB following the conclusion of the third review of the financial assistance programme for Spain, May 2013: Economic sentiment picks up in both the euro area and the EU, Winter forecast 2013 - The EU economy: gradually overcoming headwinds, Spring forecast 2013 - The EU economy: adjustment continues, EU BOP assistance to Latvia – second review under post-programme surveillance, Commission publishes report on current account surpluses, Mission to Hungary starts the negotiations on financial assistance, Speech of President Barroso at the General assembly of the UN: State of the World Economy and Finance and its impact on development in 2012, Vice President Olli Rehn speaks on restoring growth in Europe through confidence, reforms and investment, Autumn economic forecast: sailing through rough waters, EU interim forecast: a mild recession with signs of stabilisation, Autumn forecast 2011-13: Growth at a standstill, Commission publishes interim economic forecast, Results of the third Review Mission show Ireland well on track, Commission publishes 2011 Public Finances Report, Letter from President Barroso to the Heads of State or Government of the Euro area, Statement by the EC and IMF on the Review Mission to Romania, Commission publishes Annual Growth Survey. Agnès Bénassy-Quéré, Giancarlo Corsetti, Antonio Fatás, Gabriel Felbermayr, Marcel Fratzscher, Clemens Fuest, Francesco Giavazzi, Ramon Marimon, Philippe Martin, Jean Pisani-Ferry, Lucrezia Reichlin, Hélène Rey, Moritz Schularick, Jens Südekum, Pedro Teles, Nicolas Véron, Beatrice Weder di Mauro 05 April 2020 LinkedIn As the Italian Statistical Institute (ISTAT) showed, 34% of Italian production has been negatively affected. Romania: Statement at the Conclusion of the IMF and EC Staff Visit. COVID-19 economic crisis: Europe needs more than one instrument . 1  The crisis started in 2009 when the world first realized that Greece could default on its debt. Low inflation, low interest rates and low growth have become the new normal. That said, the recovery seems to have hit a stumbling block in Q4. Officials, such as Jacques Delors, the president of the European Commission, saw EMU as a way to deepen the single market. Citizens mentioned the economic situation as the most pressing issue facing the EU – over one-third (35%) of all respondents, a strong increase of 16 percentage points since autumn 2019, and rise from third to first concern. EU economy Add to myFT. Moreover, Hungary and Poland recently lifted their veto on the EU’s multi-year budget and Covid-19 recovery fund in exchange for a softening of the rule of law mechanism. As New Jersey Governor Phil Murphy said, we need to avoid “throwing gasoline on the fire.” Meanwhile, acting to… Rather, it is a matter of deciding on the sequencing of removing barriers to economic activity. Could cannabis help cure Israel’s corona economic crisis? Bureaucracy often delays commercial investments for decades. The crisis has had significant adverse economic effects and labour market effects, with unemployment rates in Greece and Spain reaching 27%, and was blamed for subdued economic growth, not only for the entire eurozone, but for the entire European Union. EU's 'different economic interests' with Biden arise ... "Its fiscal situation is deteriorating quite fast." Twitter President François Mitterrand of France hoped monetary union would reduce the influence that the German Bundesbank held in the prior European monetary system. Assessment of the situation on the labor market is even more critical – 78 % are dissatisfied and 21 % find it good. LinkedIn The current economic situation; Since autumn 2019, the proportion of Europeans who think that the current situation of their national economy is ‘good’ (34%, -13 percentage points) has declined considerably, while the proportion of respondents who judge this situation to be ‘bad’ has increased sharply (64%, +14 percentage points). The Greek government led by Prime Minister Kyriakos Mitsotakis sees the European Union’s Next Generation plan to fund economic recovery as a game-changer for a … 02/05/2014 Statement by the European Commission, ECB, and IMF on the Twelfth Review Mission to Portugal. 5 years of Euro Area economic forecasts for more than 30 economic indicators. Online Store In 2022, GDP is seen increasing 3.5%. A large majority of Member States will still have lower real GDP levels at the end of 2021 than when the COVID-crisis … RAPID Press Releases, Eurostat news and ECFIN articles related to the EU economic situation. Government spending makes up 48% of the GDP while EU bailouts contribute around 3%. Europe’s economic response to Covid hangs in balance as Germany presses pause ... Rather than a crisis-fighting jolt for the economy, he says …   As of 2017, Greece relies on tourism for 20% of GDP. 30/04/2014 Household saving rate stable at 13.0% in the euro area and down to 10.6% in the EU28. Acting too soon risks reigniting the outbreak. My Cart The European Commission said Tuesday that it expects the EU economy to shrink 8.3% in 2020, considerably worse than the 7.4% slump predicted two … ... European Union to lag 'six months behind' UK economic recovery due to vaccine failure. According to the Organization for Economic Cooperation and Development, the eurozone debt crisis was the world's greatest threat in 2011, and in 2012, things only got worse. Detailed national accounts data revealed that Q3’s strong rebound in GDP was supported by both the domestic and external economy: Resuming business activity and unleashed pent-up consumer spending fueled domestic demand, while easing lockdowns abroad boosted exports. The activity and operations of 2.2 million companies, accounting for 49% of the total, have also been suspended, but 65% of the entire export business has … The European Economic and Monetary Union (EMU) refers to all of the countries that have adopted a free trade an monetary agreement in the Eurozone. Select the subjects you want to know more about on euronews.com The European Union's GDP was estimated to be around $15 trillion (nominal) in 2020, representing around 1/6 of the global economy. That said, the recovery seems to have hit a stumbling … Concern about the economic situation … The EU is not only one of the hardest-hit by the COVID-19 pandemic, but also the weakest, most problematic economy due to pre-crisis problems. Britain and the European Commission said they are discussing how they can work together to create a “win-win” situation on Covid-19 vaccines after the bloc threatened to take tougher measures to curb the export of deliveries of shots. The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.8 in March from February’s 49.4, logging the best reading in over a year. About That means growth in the EU is likely to slow even more. Google+, Facebook Half of the respondents are sure that the European economy as a whole looks good, but 36 % say the opposite. “Italy, for example, which entered the COVID-19 crisis in the midst of an economic and political crisis, was fragile,” recalled Sapir. Operating conditions in the manufacturing sector improved at a record-steep pace at the close of the first quarter, with the NEVI Manufacturing Purchasing Managers’ Index (PMI) jumping to 64.7 from 59.6 in February.