New eurozone economic forecasts to highlight higher energy prices and divergent growth

New eurozone economic forecasts to highlight higher energy prices and divergent growth

Today, the European Commission (EC) will release a report on the present economic conditions of the Eurozone. The summer of

EU Commissioner for Economic and Financial Affairs Moscovici presents the EU executive’s spring economic forecasts during a news conference in Brussels

Photo: Reuters/Francois Lenoir

Today, the European Commission (EC) will release a report on the present economic conditions of the Eurozone.

The summer of 2018 Eurozone economic drew attention to three focal areas: differentiated growth rates across countries and regions, an anticipated rise in oil prices by at least 33% from 2017 levels and the value of private consumption and investment in expanding the euro area.  Expect today’s report to provide updates on the state of these three important findings.

The report will also highlight the poor economic status of Italy, a contentious issue in the EC. Eurozone ministers are expected to begin disciplining Italy for its enormous public debt, which was 132% of its GDP in 2017. The report will carry political weight, as other EU member states have been critical of the “unsustainable” spending plans of Rome’s current populist government.

Italy has until November 13 to reach a deal with the EC over its budget, the current version of which does not fulfil EU standards for debt regulation. The Italian government has refused so far to change its plans. Watch for whether or not the findings of today’s EC report are enough to break the Italian government’s intransigent stance on its spending proposals.

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