Brussels, 02/04/2015 (Agence Europe) - The first eurozone quarterly report for 2015 by the European Commission highlights low investment and explains the reasons behind it.
The report, published on Friday 27 March, says that the low level of investment is “largely” due to the economic recession after the 2008 financial crisis that acted as an aggravating factor, leading to high real interest rates and an ongoing deleveraging in the private sector (both companies and households). During the recession, investment fell in the public sector, particularly in eurozone countries that were bailed out. Nevertheless, according to aggregate data for the eurozone, there is no evidence of a structural change in investment behaviour, explain the Commission's economists, concluding that the Juncker plan to drum up €315 billion in private investment over three years will play a “central role” in generating rising investment, particularly in infrastructure (see EUROPE 11283).
The quarterly report also looks at recent trends in cross-border flows of capital, worker mobility as an economic adjustment factor and the impact of taxation on the real estate market. (Mathieu Bion)