Europe is betting on the global economy

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Europe is betting on the global economy

 

 

 

 

04-05-2013 09:00 AM

 

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European Union are betting on the growth of the global economy out of recession long, where exhausted the economies of EU countries and their budgets. The recession is expected to continue and GDP fell by 0.4 percent this year, hoping to be a positive figure in 2014. Continues successively higher unemployment in the European market to 12 per cent, with varying too far apart between 27 percent in Spain and Greece, and 5 percent in Germany and without it in Austria. 
facing the European market for years the decline in demand procedure, which form always drive the economic cycle. 
are betting the European Commissioner for Economic and Financial Affairs Olli Rehn on the U.S. economy «to be the locomotive for Europe's economy as well as emerging economies that grow in the form of a striking, especially in Asia and at a moderate pace in Latin America. He said in a press conference held yesterday in Brussels, said that «the growth of the global economy will support Europe's economy. He did not rule sponsored spring forecast, that «the European economy regain growth in 2014 by 1.2 percent in the European Union». He pointed out that «restore growth gradually in the second half of this year, and confirmed in 2014».
However, the anticipated increase will not be enough to ease the tension in the labor market, with an estimated unemployment rate to 12.2 percent this year and 12.1 percent next year. Rehn stressed «possible efforts should be made ​​to overcome the crisis of unemployment. He said that European policy «blends efforts remedy the situation budgets and stimulate growth for sustainable growth and the creation of citizen action». 
subjected Commission and European governments to criticism among the left and the trade unions, questioning the feasibility of austerity policies excessive, as they pushed the Europeans to reduce consumption, including the consequent slow in the economic cycle and investment. Rehn announced that the «correct situation continues budgets, but the pace of implementation of the actions fell. And saw the need to «intensify structural reforms to solve problems that Arthunt growth in Europe». 
called on European Commission President Manuel Barroso, to «put an ambitious plan to recruit young people», said after a meeting with representatives of the Parties social: «can not wait because the social situation requires urgent action» .He explained that the plan, which was approved by EU leaders last year to stimulate growth (120 billion) has not been fully implemented. He predicted that occupies the problem of youth unemployment «a key point on the agenda of the next summit in June. The estimated unemployment rate among young people by 59 percent in Greece and 56 percent in Spain, and 34.4 percent in Italy and 38.3 percent in Portugal. 
saw the European Commissioner, that the status quo «also features a decline of investment and consumption due to tax policies The decline in the volume of consumption and investment loans, either for individuals or for small and medium-sized enterprises. The situation varies by country and according to the degrees of recession. 
Rehn noted that «despite the improved situation in the capital markets in the Union as a whole and low interest rates, did not materialize this improvement in the economic situation. It was concluded that the financial crisis and the difficulties of sovereign debt and banking sector problems in some EU countries (Spain, Greece, Portugal, Ireland), «led to the loss of homogeneity in the European market. He predicted «the continuing decline in the public deficit from 3.4 percent this year, to 2.9 percent next year in the European Union. 
On the other hand, the public debt ratio will rise from 89.8 percent of GDP to 95.5 percent, a result of declining economic growth. It is likely that «declining economy France by 0.1 percent this year, as well as Greece increased by 4.2 percent, Portugal 2.3 percent, Spain 1.5 percent, Italy 1.3 percent, Netherlands 0.8 percent, Slovenia 2 percent». Monitors Europeans increasing difficulties against Slovenia, which could pay between day and another to request financial assistance to save its banking sector, similar to what I did Cyprus weeks before it got loans worth 13 billion euros in three years and the terms of harsh unprecedented, including specifically the contribution of savers and depositors Cypriots and foreigners in saving banks. They expected the European Commission, the decline in GDP in Cyprus increased by 14 percent during 2013 - 2014.