3 Dec 2013
EU's Rehn: Recovery still fragile in some parts of Europe
FXstreet.com (Łódź) - EU Economic and Monetary Affairs Commissioner Olli Rehn said today at a conference in Brussels that the recovery in Europe was still fragile and that the adjustment process in the area would continue weighing on growth for some time.
Rehn assured that Ireland and Spain would exit their rescue programs as planned, although he did not say the same about Portugal. Furthermore, he expressed worries about the growth slowdown in France, brought about by tax increases and urged the country to implement further reforms.
Earlier on Tuesday, in an interview published in the Italian newspaper La Repubblica, Rehn pointed out that Italy was not reducing its debt as quickly as required.
"In order to do it, the structural adjustment would have to have been equal to half a percentage point of gross domestic product, and it's only 0.1 percent,” the Commissioner said. “For this reason, Italy has no room for manoeuvre and can't invoke the flexibility clause for investments."
Rehn assured that Ireland and Spain would exit their rescue programs as planned, although he did not say the same about Portugal. Furthermore, he expressed worries about the growth slowdown in France, brought about by tax increases and urged the country to implement further reforms.
Earlier on Tuesday, in an interview published in the Italian newspaper La Repubblica, Rehn pointed out that Italy was not reducing its debt as quickly as required.
"In order to do it, the structural adjustment would have to have been equal to half a percentage point of gross domestic product, and it's only 0.1 percent,” the Commissioner said. “For this reason, Italy has no room for manoeuvre and can't invoke the flexibility clause for investments."