Europe’s economic growth will be buoyed by increasing stability in the Eurozone. As progress is made towards putting Greece on the path to recovery and other countries show increasing determination to implement structural reforms, Europe appears to be moving in the right direction. President of the Eurogroup, Jeroen Dijsselbloem, argues that Europe needs to make more long-term investments.
The present recovery is slow and fragile. More effort is needed to complete Economic and Monetary Union. The Eurozone needs to be reformed and strengthened, in order to make it more resilient in the face of future shocks. High unemployment and anaemic growth have dampened enthusiasm for the European project everywhere; Europe must deliver economic growth and financial stability.
The economic crisis revealed that coordination of economic policy would have to be a much more active process, to ensure that the common currency delivers on jobs and growth. It also showed that there were areas, such as Banking Union, that needed to be addressed to prevent further shocks to the economy.
When Team Junker came into office in 2015, change was promised. President Juncker, who had been involved in the EMU debate from its inception, made reform one of his ten priority areas. The response to the call for better economic governance was the Five Presidents’ report (5PR) which, while led by the European Commission, was drafted in close cooperation with the presidency of the European Council, the president of the Eurogroup, the president of the European Central Bank and the president of the European Parliament. The report aims to deliver “deeper and fairer Economic and Monetary Union” within the next decade.
European Business Summit