Brussels, 22/10/2001 (Agence Europe) - When presenting the October 2001 edition of its "Economic Outlook" to the press, on 17 October, UNICE (European employers) notes that the economic situation has considerably deteriorated since March this year. There was hope of only a limited and brief slowdown but it now appears this will not be the case. Before the terrorist attacks on 11 September, UNICE pointed out that it expected 1.9% growth this year, below the 2.8% forecast made before March. Growth this year, however, is forecast at 2.3%.
UNICE believes this slowdown could affect many sectors and it is expected that the labour markets will become looser over the next six months. Many governments still need to reform public expenditure, continues UNICE in a press release, and progress is necessary if Member States are to fulfil the objectives that are enshrined in the Stability and Growth Pact. All parties concerned should consistently support such moves, which will ultimately contribute to lower interest rates. UNICE also calls for more action to ensure that public pension systems do not undermine the stability of public finances in years to come. This is a problem of which Member States are clearly aware, but which they are proving unwilling to address effectively.
By way of conclusion, UNICE calls on the EU Member States to accelerate the implementation of the measures agreed at Lisbon in order to create the economic framework conditions necessary to overcome this challenge. The UNICE document "UNICE Economic Outlook" is available, in English only, on website: http://www.unice.org .