Donahue (Eurogroup): Eurozone recovery strong, risks remain

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“The recovery in the Eurozone is strong despite the risks that still exist and this shows the positive impact of all the measures we have taken to overcome the pandemic crisis,” Eurogroup President Pascal Donahue told a news conference after the meeting. Eurogroup.

“The economies of many countries have returned to pre-pandemic levels, while others are returning to pre-eminence levels,” he said. “This does not mean that there are no serious dangers and challenges yet,” he warned.

The European Commissioner for the Economy, Paolo Gentiloni, stressed that the pace of recovery this time was much faster, noting that in the past it took up to seven years for GDP to return to pre-crisis levels.

“This time, as early as the end of 2021, we had returned to pre-crisis GDP levels,” he said. “There are still challenges ahead of us and the most important thing is not to have a catastrophe at the level of societies,” he stressed.

For his part, the President of the European Stability Mechanism (ESM) Klaus Regling noted that the recovery of the Eurozone shows that the policies implemented during the crisis were appropriate.

“Every crisis is different and it is difficult to make comparisons with the global financial crisis or the euro crisis where major macroeconomic imbalances had to be corrected in many countries – this was done successfully, but it was painful.”

“This time we had a strong financial sector, our banks were not the problem, instead they were part of the solution,” he added.

“Finally, today we can work with a stronger institutional architecture of monetary union, something we did not have in the past,” he said. “All of this has helped us deal with the crisis and show the markets that we are much better equipped today and that builds confidence.”

The estimate for inflation is unchanged

The finance ministers also turned their attention to the jump in inflation, said the president of the Eurogroup.

“All ministers have acknowledged the impact of rising prices. However, our initial view remains that inflation, although it will remain at a higher level for a longer period of time, will begin to decline over the year as the situation on its side improves. “Supply with the restoration of supply chains. Also the high level of deposits that played a role in the rise in prices will gradually begin to mitigate.”

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Source From: Capital

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