Paolo Gentiloni, the European Commissioner for economic affairs, shared his positive outlook for Europe’s economy despite facing what he calls a “double crisis.” In an interview with CNBC, Gentiloni acknowledged the geopolitical impact of Russia’s invasion of Ukraine and its subsequent economic consequences.
From a geopolitical perspective, Gentiloni noted that the crisis had global implications, but economically, Europe, particularly Germany, felt its effects deeply. Concerns arose that the region would plunge into a significant economic slowdown due to Russia’s actions.
However, Europe managed to secure alternative energy sources, reducing its reliance on Russian energy, and some governments provided relief to consumers grappling with high energy costs. As a result, the euro area experienced growth, registering a 3.5% rate in 2022, as reported by the International Monetary Fund. The IMF anticipates a growth rate of 0.8% for the euro zone in the current year and 1.4% in 2024.
Gentiloni proudly stated, “We had an excellent 2022, with higher growth rates than the U.S. and China.” While acknowledging a slowdown starting in the last quarter of 2022, he emphasized that it shouldn’t be labeled a recession, as he believes Europe can steer clear of one.
One challenge Europe faces is achieving “energy independence,” which Gentiloni attributed to the recent economic deceleration. He expressed concerns about the costs incurred by families and the inflationary pressures resulting from this pursuit of energy independence.
The European Commission is set to release new economic forecasts for the region on September 11, offering insights into the overall growth scenario. Despite recent economic data indicating a slowdown, including a contraction in European business activity and persistent inflation above the European Central Bank’s target, Gentiloni remains cautiously optimistic about Europe’s economic prospects.”
