EU-Economy: European Commission upgrades economic forecasts - by Sam Fleming

The European Commission has sharply raised its economic forecasts for the coming two years, as an accelerating vaccination campaign helps the eurozone recover from the historic blow delivered by the pandemic.

The euro area will expand by 4.3 per cent this year and 4.4 per cent in 2022, Brussels said on Wednesday, compared with previous forecasts for 3.8 per cent growth in both years. As a result, all member states are now expected to regain their pre-crisis output levels by the end of next year, following a historic 6.6 per cent slump in 2020.

The stronger outlook was driven by the rising vaccination rates and the prospect of lockdowns easing across the region, as well as improving export demand driven by a global rebound. Brussels for the first time fully factored in the impact of the €800bn Next Generation EU economic relaunch package, which is expected to begin paying out in the second half of the year.

“The shadow of Covid-19 is beginning to lift from Europe’s economy,” said Paolo Gentiloni, the EU’s economics commissioner. “After a weak start to the year, we project strong growth in both 2021 and 2022. Unprecedented fiscal support has been — and remains — essential in helping Europe’s workers and companies to weather the storm.”

Read more at: European Commission upgrades economic forecasts | Financial Times

EU: France becomes a nation of optimists

The French have become more optimistic about the future that at any time in the past eight years, a survey showed on Tuesday (2 January), belying their reputation as a nation of pessimists.

According to a Harris Interactive survey for RTL radio, 59 percent of the French were optimistic for 2018, the highest level since 2010 and 15 points higher than a trough in 2012.

Supporters of President Emmanuel Macron’s party were the most optimistic, the poll showed, while those of the far-right National Front were the most pessimistic.

“There’s probably a bit of a Macron effect,” Harris head of political polling Jean-Daniel Levy said, pointing to renewed hope about European integration, one of Macron’s policy priorities.

“There is in particular the feeling of having a presidency that holds water, with good prospects on the economic front,” he told Reuters.

Read more: France becomes a nation of optimists – EURACTIV.com