EU Economy Could Start Recovery Next Year
The EU economy has reached its lowest point, and recovery could begin next year, according to the Finance Ministers of the Member States, who met in Brussels. The ministers agreed that it is necessary to return to fiscal discipline once the economy starts to grow again.
Finance ministers of the euro area were agreed with the forecast of the European Commission (EC), which estimated that the EU economy will return to annual growth in the third quarter of next year, after contracting 4% in 2009.
“It appears that the recession has reached the lower threshold, but we hope that will end next year”; said Minister of Finance of the Czech Republic, Miroslav Kalousek, before the beginning of the meeting in Brussels. Czech Republic holds the EU rotating presidency.
Recession this year will be mitigated by government expenditures, with a total value equivalent to 5% of Gross Domestic Product (GDP) of the EU. The main measures are addressed to “fill the gaps” left by the disappearance of private investment and exports after the financial crisis and global recession.