EU economics main says Europe is gripped by a ‘double crisis’ — but it can prevent a recession

EU economics main says Europe is gripped by a ‘double crisis’ — but it can prevent a recession


EU economics chief says Europe can avoid a recession

Europe is facing the effects of a “double crisis,” but the location can stay clear of a recession, Paolo Gentiloni, the European Commissioner for economic affairs, informed CNBC on Saturday.

“I imagine we are we going through the effect of the double disaster,” Gentiloni claimed in reference to the geopolitical effects from Russia’s complete-scale invasion of Ukraine and the subsequent financial hit to the European continent.

“From a geopolitical issue of perspective, [the crisis] impacted also, of system, the U.S. and all the globe, but from the economic place of watch, it impacted very seriously Europe and Germany in particular,” he explained.

Russia’s invasion of Ukraine in February final calendar year sparked really serious fears in Europe that the region would enter a sizeable financial slowdown.

Having said that, the area has considering that been able to secure option vitality supplies, which right up until then primarily came from Russia, and some governments were capable to deliver reduction to consumers going through large power fees.

The euro location, in the conclude, grew at a level of 3.5% in 2022, according to the Worldwide Financial Fund. The institution expects a advancement fee of .8% for the euro zone this year and 1.4% in 2024.

“We had an superb 2022, better growth than the U.S. and China,” Gentiloni told CNBC’s Steve Sedgwick at the Ambrosetti Forum.

“The slowing down started from the previous quarter of 2022 and it is there, but please will not phone this a recession, for the reason that I feel we can avoid a economic downturn, we are averting economic downturn,” he claimed.

‘Energy independence’ problem

The European Commission, the govt arm of the EU, is publishing new financial forecasts for the entire area on Sept. 11. They will give an sign of the progress photograph in the space.

Nevertheless, the latest economic facts has lifted problems about a slowdown. For occasion, European enterprise exercise contracted through August, to its most affordable degree since November 2020.

Inflation has eased in the latest months, but the most recent set of knowledge confirmed the headline determine steady in August from the former thirty day period at 5.3%. Although reduced than before this calendar year, it is nevertheless well previously mentioned the European Central Bank’s target of 2%.

“Why after a powerful rebound right after the pandemic is our economic climate slowing down? I believe due to the fact of the challenge to gain energy independence, which was really costly for our family members and fueling inflation,” Gentiloni reported.

U.S. Inflation Reduction Act is ‘a real challenge’ for Europe, EU economics chief says



Source

AstraZeneca CEO doubles down on U.S. amid rumors of listing shift
World

AstraZeneca CEO doubles down on U.S. amid rumors of listing shift

A view of the AstraZeneca office in Mölndal, Sweden, on September 12, 2024. Nurphoto | Getty Images AstraZeneca CEO Pascal Soriot on Tuesday reiterated the pharmaceutical firm’s commitment to the U.S. market amid reports that he is considering shifting its listing stateside. Soriot said the U.K.-listed company had many reasons to be in the U.S., […]

Read More
Stellantis reinstates guidance but flags ‘tough decisions’ after .7 billion tariff impact
World

Stellantis reinstates guidance but flags ‘tough decisions’ after $1.7 billion tariff impact

A new Jeep Wrangler 4-Door Sahara 4×4 vehicle displayed for sale at a Stellantis NV dealership in Miami, Florida, US, on Saturday, April 5, 2025. Eva Marie Uzcategui | Bloomberg | Getty Images Auto giant Stellantis on Tuesday reinstated its financial guidance and touted a gradual recovery over the coming months. Stellantis, which owns household […]

Read More
PayPal beats on earnings, raises full-year outlook as Venmo growth accelerates
World

PayPal beats on earnings, raises full-year outlook as Venmo growth accelerates

PayPal reported better-than-expected results for the second quarter and raised its full-year guidance for transaction margin dollars and earnings per share. The stock slipped more than 4% following the report. Here’s how the company did compared with Wall Street estimates, based on a survey of analysts by LSEG: Earnings per share: $1.40 adjusted vs. $1.30 expected […]

Read More