EU heads of government: economic revival is still weak

EU heads of government: economic revival is still weak

03-29-2010 08:43

The recovery of the European economy remains ‘weak’ and sustainability is required before withdrawing crisis support measures, according to the government heads of the 27-nation EU. “The economy is recovering, but the revival remains weak,” the draft statement by the European Union leaders shows. “It will be crucial that governments’ public finances are restored when the recovery is sustainable, which enables withdrawal of the crisis support measures that were taken to overcome the financial slump,” according to a draft of the conclusions at the meeting in Brussels.

Common European Currency

The leaders of the 27-nation European Union focused on ending the debt crisis in the eurozone by approving an emergency aid plan for Greece, which boosted the Common European Currency to rise after the lowest level in 10 months versus the Greenback. In the meantime, the EU economy is having difficulties to recover after the economic downturn, due to the fact that the euro area’s average budget deficit may more than triple in 2010 in comparison to 2008, European Union estimations showed.

Economic expansion

“The European Union now has to deal with extreme levels of debt, while the economy grows slowly and the joblessness rate remains high,” the draft shows. “Rebalancing the economy and restoring public finances are the primary requisites for economic expansion.”

European Union

The government heads of the 27-nation European Union also emphasized that it’s crucial to improve derivative markets, capital requisites, crisis management, and sovereign credit-default swaps, the draft shows.

Fast recovery

The draft also reveals: “A fast recovery is needed to reinforce the monetary regulation and control in the European Union and in global fora, such as the Group of Twenty Finance Ministers and Central Bank Governors (G-20), while also guaranteeing equal competition conditions at the international level.”

Non-binding targets

The government heads of the 27-nation European Union agreed on non-binding targets for GHG emissions, research and development and employment. At the next summit they will continue their talks regarding targets for education and decreasing poverty, the draft shows.