Latest economic data shows the European Union may avoid a recession that was expected earlier and have a more shallow contraction instead, European Economic Commissioner Paolo Gentiloni said.
“The economic situation is still uncertain. We had some encouraging news, we managed to reduce our energy dependence, energy prices went down significantly and inflation peaked last year in Europe,” Gentiloni told reporters.
“So there is a chance to avoid a deep recession and maybe to enter a more limited, shallow contraction,” he said on entering monthly talks of euro zone finance ministers.
Mr Gentiloni was also quizzed on the EU’s relationship with the United States, which he described as “very good”. He added that the EU must strengthen its competitiveness in the wake of Washington’s “Inflation Reduction Act” (IRA). “We have to strengthen our competitiveness and we have to do so by one side streamlining our state aid rules (…) and also in parallel by funding common projects”, he argued.