The Economic Commissioner of the European Union stated that the Union’s economy is likely to contract in the upcoming months as it struggles to deal with the energy crisis and excessive inflation.
According to Bloomberg News Agency, Paolo Gentiloni, the economic commissioner, was addressing a group of eurozone ministers in Brussels today, a few days before the European Commission released its autumn economic forecasts.
Gentiloni declared, “We still have a solid quarter with favourable news, which was not evident. However, we also know that the economy is slowing down and that the recession will at least last into the winter.
” In response to a question about the economic expectations expected to be announced by the European Commission, Valdes Dumbrofiskis, Vice President of the European Commission, told reporters that it “will refer to the increasing state of the economy, and confirm the level of high inflation. ”
With the sustained high cost of energy and the targeted actions taken to curb inflation, it is anticipated that inflation will continue to drop down even as the European Central Bank raises interest rates.
The financial ministers of the euro area debate how to coordinate future operations without raising inflation as well as the steps taken in various countries to combat high prices.
The first report from the commission on the national budget plans for 2023 will also be heard by the ministers.
Tomorrow, on Tuesday, in Brussels, the 27th meeting of the financial ministers of the member states of the European Union is set. Topics to be covered include the financial support for Ukraine, as well as changes to the European Union’s joint budget rules.
The European economy will likely decline this winter.
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