Brussels, 08/01/2009 (Agence Europe) - The latest economic confidence indicators published on Thursday 8 January fell to their lowest level for over two decades. This worrying situation will, the European Commission hopes, be attenuated by implementation of the European Recovery Plan.
In December 2008, the Business Climate Indicator (BCI) for the eurozone continued to decline considerably in the EU and the euro area, reaching its lowest level since January 1985. This spectacular fall compared to previous months signals a deteriorating trend in industrial production growth which is likely to turn out clearly negative in the fourth quarter. All components of the BCI deteriorated, the European Commission states. At the same period, the Economic Sentiment Indicator (ESI) also declined considerably in the EU and the euro area. It fell by 7.0 points in the EU and by 7.8 points in the euro area, to 63.5 and 67.1 respectively, also at the lowest level since January 1985. In addition to these confidence indicators, figures are poor for unemployment and GDP published the same day (see other articles).
The economic situation “is not getting any better” commented the spokesperson for Joaquin Almunia, Commissioner for Economic and Monetary Affairs, saying however: “We hope the recovery plan that we have proposed and which was adopted in December by the member states will prove successful”. “At this stage, if we add up all the recovery plans (decided by member states), we are more or less at 0.9% of European GDP”, she confirmed, recalling that the Commission had recommended increasing state contributions to 1.2% of GDP (Community contribution and that of the European Investment Bank being increased to 0.3% of GDP - EUROPE 9803). With the formal announcement next week of the new package of German measures, she said they would not be very far from the last figure. After having developed a first plan of €31 billion in November, Berlin is contemplating a new plan of €50 billion for 2009 and 2010. (A.B./transl.jl)