Brussels, 18/10/2001 (Agence Europe) - In its monthly bulletin of October, published on Thursday, the European Central Bank (ECB) confirms that the terrorist attacks had an immediate adverse effect on economic activity and confidence, "which could delay the recovery of more vigorous economic growth". The ECB, however, is tabling on recovery "next year, once the initial shock has been absorbed". It stresses, nonetheless, that the risk of a worsening of current prospects must be closely watched.
The data that has made the ECB reasonably optimistic show that: - in the euro zone there are no major imbalances requiring a long term economic adjustment process; - the fundamentals of the euro zone remain positive thanks to the implementation of policies aimed at price stability, budgetary adjustment, wage moderation and structural reforms; - financing conditions are favourable; - and the expected fall in consumer price rises should continue to stimulate household spending.
Furthermore, it provides for inflation in the euro zone to continue to fall to reach a level comparable to price stability. The Frankfurt Institute considers it would be premature to draw up the results of the macro-economic impact of the tragic events in the United States. It simply points out that, towards 10 October, the stock markets had returned to levels close to those of before 11 September and that the returns on long term public loans "were hardly affected".