Brussels, 17/03/2003 (Agence Europe) - The European Employers' federation UNICE will publish its Spring 2003 Economic Outlook in Brussels on 17 March, highlighting the loss of European competitiveness, economic stagnation - with GDP growth forecasts cut for every Member State - loss of consumer confidence, the need for employers to adapt to the weaker US dollar and employment expected to hover around 8.5% in 2003 and 2004. Reacting to this situation, UNICE President Georges Jacob urged the Spring Summit at the end of this week to take serious action to reverse the trend, breath life into the Lisbon Strategy, and insist on the necessary structural reforms at national level and the modernising of the labour market in terms of technological innovation (see Europe of 12 March, p.15, on UNICE's priorities).
When UNICE published its last Economic Outlook in October 2002 growth in the eurozone was forecast at 2.1% for 2003 (see Europe of 24 October 2002), but economic indicators have since deteriorated and growth expectations have been trimmed by governments and independent forecasters alike. In February 2003, points out UNICE in a press release, European business expected growth for this year to be a mere 1.2% in the eurozone (and 1.4% for EU15). Today the prognosis looks even worse.
One major uncertainty overhanging future prospects is the Iraq crisis, but concern is growing over the ballooning current account deficit in the US. Yet UNICE explains that many of Europe's economic woes are home-grown and "require immediate and effective action in EU Member States" It points out the worrying situation in Germany, noting that other European economies also have problems. UNICE notes "an urgent need for EU governments to demonstrate political will and carry though reforms to tackle underlying economic weaknesses".
The full Economic Outlook (in English) can be downloaded from http://www.unice.org