EU says euro zone growth prospects are most favourable seen 'for many years' |
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Thu, 03 May 2007 11:02
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BRUSSELS (Thomson Financial) - The European Commission said growth prospects in the euro zone are the most favourable enjoyed 'for many years'.However, in its annual statement on the euro zone, the commission also warned of risks to growth, including 'exchange-rate tensions', and called on member states to use the recovery to improve their public finances.It noted that the euro zone posted growth of 2.7 pct last year, the highest rate since 2000 and well above the bloc's long-term average.'The euro area's positive growth performance partly reflects the current cyclical upturn but it may also show that structural reforms are beginning to take effect,' it said.The bloc is showing increased resilience to global disturbances, it said.'The prospects for continued economic growth in the euro area are more favourable in 2007 than they have been for many years,' it said.It warned however of risks from any disorderly correction of global imbalances, exchange rate tensions, and geopolitical crises.The commission also said macroeconomic policy needs to be on a sound footing for the recovery to continue.'In the budgetary sphere, it is essential that member states seize the opportunity created by the economic upturn to complete the consolidation of their budgetary positions before the end of the decade,' it said.victoria.main@thomson.comvm/jagCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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EU says euro zone 2007 growth outlook is 'favourable', risks are balanced 