European Union (EU) leaders, meeting in Brussels this Friday, acknowledged that inflation remains a “fundamental issue” but said they expect inflation rates to continue to fall while EU economies grow “at a reduced pace.” dynamics.”
“Inflation remains a fundamental problem and it is essential that the process of reducing inflation continues. We remain united in our strong determination to improve the resilience and competitiveness of our economies,” said a statement from this Friday’s Euro Summit, an inclusive fair (with all EU countries, not just the single currency) in Brussels .
The document, agreed by the heads of government and EU states, emphasizes that the community’s economies “have demonstrated remarkable resilience in the face of numerous economic shocks and continue to grow, albeit at a slower pace.”
A day after the European Central Bank (ECB) announced it had left interest rates unchanged for the first time since July 2022 as inflation slowed, EU leaders stressed that “national fiscal policy coordination rules are important meaning”. for effective policy coordination in the Economic and Monetary Union and to support the resilience and resilience of the economy of the euro area and the European Union as a whole.”
The Euro Summit took place on the second day of the European Council in Brussels, marked by tensions in the Middle East.
In its summer macroeconomic forecasts published in mid-September, the European Commission revised down its forecast for euro zone inflation this year to 5.6%, saying tight monetary policy was “working” but warned of revenue losses and worsened the forecast. for 2024.
Also on the day, the community’s chief executive announced that the “very weak” economic activity of recent months in the eurozone and EU, which was expected to persist, had led to a downward revision of forecasts for economic growth in 2024 to 1.3%. and 1.4%.
Inflation has been falling in recent months after reaching historic levels due to the economic reopening from the Covid-19 pandemic, the energy crisis and the economic fallout from the war in Ukraine, but is still above the 2% target. ECB for price stability.
To achieve this, the ECB tightened monetary policy with successive increases in interest rates, but now at a slower pace.
Author: Lusa
Source: CM Jornal
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