Brussels, 15/12/2003 (Agence Europe) - In its third annual report on the eurozone economy, published on Monday, the European Commission expresses confidence that economic recovery is gathering momentum and will pick up further in the first quarter of 004. The Commission acknowledges, however, that eurozone exports are suffering from the strength of the euro against the dollar, although the rising euro has helped sustain demand by keeping tabs on inflation. The Commission notes that the sharp pick-up in the US economy is a positive signal for the euro area, but its impact should not be overestimated. It adds that the short-term risks to the eurozone are relatively balanced.
On budget policy, the Commission warns that the scale of France and Germany's public deficits may lead to a rising long-term interest rates in the eurozone, noting that 'some Member States' inability' to cut their public deficits is jeopardising their long-term budget balance against a backdrop of an ageing population. It adds that certain EU countries continuing to run excess budgets makes it more difficult to implement 'healthy' budget policy in other countries, whether current Member States or acceding countries. The Commission describes the slow productivity growth in the eurozone as 'disappointing'.
New poll on use of the euro
The results of a Flash Eurobarometer poll in which people in the 12 countries of the euro area were interviewed between 29 October and 11 November 2003 reveal that one out of every two people interviewed said they no longer had problems with using the euro. The idea of introducing a one euro note is only supported by a minority (31% on average). The is near-unanimous support for doing away with the 1- and 2-cent coins.
After hearing a simplified definition of the Pact, 40% of people in the euro area believe that their country abides by the rules, the percentage being as high as 64% in Germany and 78% in France. A relative majority of those questioned (47%) want to see the Pact strictly enforced, even if a country is faced with economic difficulties, compared with 42% who think the opposite. Among the latter, 53% of Germans and 48% of the French consider that a country must be free not to comply with the Stability Pact. People are divided on the question of penalties to be applied for failure to comply with the Pact, 40% believing that penalties are not applied in the same way to all Member States (40% on the other hand think that it is applied in the same way). Finally, 71% are aware of what the Pact has contributed to strengthening the single currency and therefore support it.