Europe has an opportunity to avoid a deep and prolonged recession though the economic situation remains uncertain, the European Union’s economy commissioner, Paolo Gentiloni, said Monday.
(Bloomberg) — Europe has an opportunity to avoid a deep and prolonged recession though the economic situation remains uncertain, the European Union’s economy commissioner, Paolo Gentiloni, said Monday.
“We managed to reduce energy dependence, energy prices went down significantly, and inflation peaked at the end of last year in Europe, so there is a chance to avoid a deep recession and maybe to enter a more limited, shallow contraction,” he told reporters in Brussels.
Gentiloni said the bloc needs to work on implementing the €807 billion ($873 billion) NextGenerationEU recovery plan, finding agreement on fiscal rules, supporting competitiveness and investment, and coordinating policies to target the most vulnerable and avoid increasing public expenditure.
Avoiding a deep recession depends on Europe’s policies, not just global trends, he said, adding that he is optimistic the bloc can limit the consequences of the energy crisis.
Gentiloni was speaking ahead of a meeting of the Eurogroup, which brings together the euro area’s finance chiefs.
Eurogroup President Paschal Donohoe earlier told Bloomberg Television the euro area is in a “very resilient place” and is likely to avert recession with a “very low level of growth” this year. Inflation among the 20 countries that share the currency is expected to slow to around 6% to 7% during this year from 8% to 9% in 2022, he said.
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