Brussels, 05/03/2002 (Agence Europe) - Economic and Finance Ministers from the Euro-zone, meeting on Monday evening in Brussels for EUROPGROUP discussions, were of the opinion that the economic fundamentals were in place for an upturn in growth in Europe. They believe that the economic conjuncture will depend on the results obtained at the European Council of Barcelona, which could breathe new wind into the sails of Europe's potential for growth.
EUROGROUP President, Rodrigo Rato, declared during the final press conference that the basic conditions for return to growth in 2002-2003 appeared to be in place, even if it was still too early to talk about a real upturn. According to Mr Rato, the Barcelona Summit could contribute to a recovery in the European economy. Commissioner Pedro Solbes stated that the economic slowdown had bottomed out in the fourth quarter of 2001 and European growth would be in the range of 1.5% for 2002 just like in 2001, even if the development curve appeared different. Economic indicators are counting on a slight recovery in growth from the first quarter of this year, then a "speed-up" in growth in the second quarter. According to Mr Solbes, they preparations for Barcelona would not be affected by uncertainty about economic growth. Commissioner Solbes hoped that Member States could give an essential helping hand in the field of structural reform that could stimulate economic upturn and increase Europe's potential for growth and that it was imperative that this time they didn't let the opportunity for growth pass them by.
Mr Rato explained that as far as the economic situation was concerned, individual consumption remained relatively robust, as well as investment in the property market and that the affects of the slowdown had been felt particularly strongly in investment in new equipment and exports (foreign trade). Mr Solbes backed up Mr Rato's explanation with the following figures: individual consumption fell from 2.7% in 2000 to 2.0% in 2001 (this is estimated at 1.6% for 2002); gross capital formation fell to 0.7% in 2001 compared to 4.4% the year before; the EU registered 12% growth in exports in 2000, which fell to 3.8% in 2001 (it is expected to be even less in 2002 according to initial estimates).
In response to questions concerning the succession of Christian Noyer, Mr Rato indicated that the ECOFIN Council was expected to find an agreement in April. Mr Rato did not rule out the possibility that the ECB Vice President could be appointed from among the members of the current General Council and that the person chosen to succeed Mr Noyer would be an ordinary member of the said Council. The EUROGROUP President acknowledged that the governor of the Greek Central Bank, Lucas Papademos, was a very good candidate but indicated that there would be other candidates who would also have the qualities required for this post.