Brussels, 21/05/2014 (Agence Europe) - The most recent economic forecasts from Business Europe for 2014 suggest economic growth in the EU28 will reach 1.6% and 1.2% in the eurozone (compared to the 1.4% and 1.1% in Business Europe's autumn outlook).
European employers expect the recovery to gain further momentum into 2015, with output growing by 1.9% in the EU and 1.6% in the eurozone.
Domestic demand should gradually replace net exports as the main growth driver. Business Europe expects private consumption in the EU to grow by 1.2% in 2014, and investment to expand by 2.5%.
Unemployment is not expected to fall much in 2014, sitting at 10.6% in the EU and 11.7%, in the eurozone (11.9% at present).
Unsurprisingly, Business Europe says that, in order to strengthen the recovery and ensure it be job-rich, member states must avoid complacency and urgently press ahead with the implementation of ambitious structural reform programmes: “The Commission and Council can provide a key signal regarding Europe's commitment to reform by delivering robust and concrete country specific reform recommendations to Member States in June.'
Business Europe explains: “Access to finance risks being an increasing constraint to the emerging recovery. Comprehensive and timely implementation of Banking Union can play an important role in helping reduce fragmentation in EU financial markets which is constraining bank lending. Decisive initiatives have to be taken to unlock Europe-wide alternatives to bank finance, particularly in light of continuing bank deleveraging. Areas for action include prudent securitization, equity, corporate bonds and venture capital, and better leverage of public funds. The Commission must swiftly follow-up with concrete measures following its recent communication on long-term access to finance”. Business Europe says further measures are needed to deepen and implement the single market, particularly in the areas of the digital economy, telecoms and energy, and hopes for '”a successful deal on Transatlantic Trade and Investment Partnership” (see EUROPE 11083). (MB)