26.5.2011
By Simon Miller
The European Council president Herman Van Rompuy is cautiously optimistic that the EU economy is out of the danger zone and on its way to recovery.
Speaking to journalists before the G8 meeting in France, Van Rompuy said the Eurozone was expected to grow by 2% in 2011 and 2012 with only two countries remaining in recession this year.
“This is the good news. The recovery is also more self-reliant, fuelled by investment and, albeit more modestly, by private consumption. Individual current account deficits are declining. So is the overall level of public deficit. Our macroeconomic fundamentals are clearly better than those of other advanced economies,” he commented.
He added that the EU had created the tools and instruments to deal with the sovereign debt crisis with reforms amounting to “the most fundamental overhaul of our economic governance since the creation of the euro”.
The bullish comments came as European leaders floated an idea to take the sell-off of Greek assets out of the country’s hands.
On Monday, the Greek government promised to fast-track the country's gaming-to-ports disposal programme but the Dutch has proposed that responsibility for the sell-off should be passed to international experts.
Meanwhile, Finland has proposed that the companies should be transferred to a giant government-owned company that could be used as collateral against further EU loans.
Talking about the debt crisis, Van Rompuy commented: “.A year ago, at the G8 Summit in Muskoka, the Eurozone had just left a dangerous situation behind it. Since then and until today, the EU's Heads of State and Government have clearly shown that we will not let the euro fail.”
He added: “Of course we are still going through difficult times. That's why the emphasis must continue to be on implementing the tough but necessary reforms and create the basis for sustained growth and employment.”
Other stories you may find of interest:
Ongoing risk threat to global recovery
Risk of inflation and unsettled fiscal situations could scupper the on-going global recovery according to the latest Economic Outlook from the Organisation for Economic Co-Operation and Development.
