Olli Rehn: A modest recovery is gaining ground - Here’s the top line from EC vice-president Olli Rehn today, arguing the eurozone recovery is gathering pace: Recovery is gaining ground in Europe, following the return to growth in the middle of last year. The strengthening of domestic demand this year should help us to achieve more balanced and sustainable growth. Rebalancing of the European economy has been progressing and external competitiveness is improving, particularly in the most vulnerable countries. The worst of the crisis may now be behind us, but this is not an invitation to be complacent, as the recovery is still modest. To make the recovery stronger and create more jobs, we need to stay the course of economic reform.
And today’s winter forecasts (see here onwards) also shows that government deficits are expected to keep falling -- to 2.7% of GDP in the EU and 2.6% in the euro area.
That will push total debt-to-GDP ratios to almost 90% in the EU and 96% in the euro area....
Rehn: I'd support a donors' conference for Ukraine. The final question at the EC winter forecasts press conference was on the Ukraine crisis. Olli Rehn said the Commisison was in close contact with the IMF on the issue. He said Kiev will need short-term funding help, and longer-term financial aid to fund economic reforms and recovery. Rehn added that he would support the idea of a ‘donors’ conference’ for Ukraine, where EU member states with the most resources could agree contributions to help Ukraine. He pointed out that most of the EU’s resources in an issue such as this reside with its member states (as there isn’t a particular EU budget or pool of money to tap).
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