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The EU Commission corrected its growth forecast for the Eurozone downwards. In the 19 States of the monetary Union by 2019, a rise in economic output of 1.3 percent was expected, according to the Department of on Thursday. In its autumn forecast, the Commission had forecast 1.9 percent. Mainly due to the weaker economic development in Germany and Italy.
in the coming year, the EU reduced experts the prediction. They now expect growth of 1.6 instead of 1.8 percent. There are going to be "in all EU-countries" this year, more growth, said Commission Vice-President Valdis Dombrovskis. The authority but I have to, especially for the largest economies in the Eurozone, their forecast down a notch.
reason to be "external factors," said Dombrovskis. To trade tensions and the slowdown of economic activity in the emerging markets, particularly in China, were "". In some countries, concerns about the interdependence between the state and the banks, and the sustainability of the debt burden would also "again". The possibility of a disorderly Brexit-creating "additional uncertainty".
the car industry makes problems in Germany
An important reason for the weak economy in Germany, the car industry. The production of cars had been slowed, because new emission standards have been introduced, the Commission argued. For this year, the EU is expected in Germany of 1.1 per cent economic growth, up from 1.8 percent.
daily mirror tomorrow location for Free orderAlso correct, the Federal government had last week its growth forecast sharply downwards. Instead of the 1.8 per cent growth now expected for the current year, only one percent.
In the case of Italy, the Commission highlighted the prospects for growth in 2019 is even more apparent. Instead of 1.2 per cent, it is now estimated to be only 0.2 percent. Brussels, referred, in particular, uncertainties due to the budgetary policies of the populist government in Rome.
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Kerstin Andreae, Reinhard Bütikofer, Katharina Drögelast year, had argued the Commission and Italy on the budget for 2019. The government in Rome, originally planned with a deficit of 2.4 percent of economic performance - three Times as much as their predecessors. The coalition of right-wing Lega and the populist Five-star movement wants to Fund the promise of an expensive choice, especially for a basic income and a lower retirement age. In the end, both sides agreed on a deficit target of 2.04 percent. (Reuters, AFP)
