europe faces drawnout painful economic recovery
Last Updated : GMT 13:26:10
Arab Today, arab today
Arab Today, arab today

Europe faces drawn-out, painful economic recovery

Arab Today, arab today

Arab Today, arab today Europe faces drawn-out, painful economic recovery

Brussels - AFP

Europe’s economic prospects have dimmed considerably, new EU forecasts showed on Wednesday, pointing to a drawn-out and painful recovery before any return to growth. Record and mounting unemployment, much weaker projections for next year and only a muted improvement in 2014 are, however, the price to pay for stabilising public finances and re-balancing the economy, the European Commission argued. Restoring countries to health after years of both internal and external imbalances takes time and the measures required dampen growth but there has been progress, it noted. Further progress in fixing strained public finances “is underpinning this rebalancing process,” the commission said. After years of over-spending, austerity and violent protests, the Commission found enough positives to conclude that Greece should finally emerge from seven years of recession in 2014. The Commission said eurozone growth next year would come in at just 0.1 per cent, whereas six months ago, it was tipping a much stronger recovery of 1.0 per cent. It said gross domestic product (GDP) across the 17-state currency area would shrink 0.4 per cent in 2012 and would take until 2014 to recover, with expected growth then of 1.4 per cent. “Europe is going through a difficult process of macro-economic rebalancing, which will still last for some time,” EU Economic Affairs Commissioner Olli Rehn said in a statement, but there should be a gradual pick-up “from early next year.” The Commission expected the United States to far outstrip Europe, with steadily-increasing growth above the two-per cent mark going forward. Rehn said there was still a risk that unemployment - put at nearly 12 per cent next year in the eurozone - could undo progress on financial markets where the pressures on government borrowing rates have eased in the past few months. With inflation next year forecast to “fall below two per cent,” the core target underpinning eurozone-wide economic planning, Rehn said decisions taken at some two dozen crisis summits had “laid the foundations for strengthening confidence.” But with struggling Spain and Italy expected to remain mired in recession this year and next, Rehn said “there is no room for complacency. “Europe must continue to combine sound fiscal policies with structural reforms to create the conditions for sustainable growth,” he added. Only a continuation of hardline policies putting the focus on greater economic and fiscal integration could “bring unemployment down from the current unacceptably high levels,” he said. Greece meanwhile should see 0.6-per cent growth in 2014, the Commission said, as the country faces a key turning point later on Wednesday when lawmakers vote on new austerity measures agreed in return for urgently needed bailout funds. The Greek economy has shrunk by around a fifth since the crisis first broke and the Commission forecasts were notably stronger than those of the government which expects 0.2 per cent in 2014, 2.5 per cent in 2015 and 3.5 per cent come 2016. Greece, like Spain, faces crippling levels of unemployment as the very austerity measures adopted to fix their debt crisis also undercut demand. In Spain, the bursting of a property bubble in 2008 and the near collapse of the banks has forced Madrid to tighten the purse strings, sending unemployment soaring to around 25 per cent. It will hit more than 26 per cent next year, according to the Commission.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

europe faces drawnout painful economic recovery europe faces drawnout painful economic recovery

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

europe faces drawnout painful economic recovery europe faces drawnout painful economic recovery

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Solaf happy for participating in “Hotline”

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday