WASHINGTON (Reuters) – A top euro zone official proposed a new growth deal for Europe on Friday as fellow finance diplomats from around the globe sounded alarm over the continent’s faltering growth and pressed for action to ward off a recession.
The International Monetary Fund, which cut its global growth forecasts for the third time this year ahead of its fall meetings this week, said Europe’s weakness was a matter of particular concern, a sentiment echoed by many policymakers, private economists and investors.
WASHINGTON (Reuters) – The chairman of euro zone finance ministers proposed on Friday a new growth deal for Europe which would reward governments reforming their economies with cheap European funds for investment and leeway on budget consolidation targets.
The proposal comes at a time as Europe is on the brink of another recession and is desperate to boost economic growth to reduce almost record high unemployment and huge public debt.
WASHINGTON (Reuters) – Alarmed by faltering euro zone growth, top finance officials from around the globe on Friday were expected to press their European peers for action to avert a recession and ward off deflation.
The International Monetary Fund, which cut its global growth forecasts for the third time this year earlier this week, said Europe’s weakness was a matter of particular concern.
WASHINGTON (Reuters) – Germany, France and Italy must focus on public investment to boost economic growth, the European Union’s incoming top official responsible for growth and jobs said on Thursday.
Jyrki Katainen, who will take over as the European Commission’s vice president for jobs, growth, investment and competitiveness on Nov. 1, told Reuters many countries have cut investment too much as part of efforts to consolidate budgets
BRUSSELS (Reuters) – France’s Pierre Moscovici, the EU commissioner-designate who will take charge of policing budget discipline in the euro zone, said he was ready to step up disciplinary action against Paris for not respecting its obligations under EU budget rules.
In written answers to the European Parliament’s economic and monetary affairs committee that must approve him for the job, the former finance minister said it was a matter of credibility for the Commission as the guardian of EU laws.
BRUSSELS (Reuters) – The incoming head of the EU executive, Jean-Claude Juncker, is under pressure to drop one of his team and reshuffle nominees in a deal with parliamentary leaders to get his line-up confirmed in office, sources in the EU legislature said on Tuesday.
The prime casualty, several sources said, could be former Slovenian prime minister Alenka Bratusek, who would be replaced by a compatriot. The deal may also see Tibor Navracsics of Hungary given a smaller portfolio after a parliamentary committee voted to reject him over his civil rights record.
BRUSSELS (Reuters) – The European Commission is likely to reject France’s 2015 budget draft at the end of October and ask for a new one that would better reflect Paris’ deficit reduction obligations under European Union rules, several euro zone officials said.
It would be the first time the EU executive exercises its power to demand changes to a national budget draft under new prerogatives that EU countries granted the Commission in 2013.
BRUSSELS (Reuters) – Euro zone retail sales increased much more than expected in August, data showed on Friday, pointing to stronger demand from households that could help economic growth in the third quarter.
The European Union’s statistics office Eurostat said retail sales in the 18 countries sharing the euro rose 1.2 percent month-on-month in August for a 1.9 percent year-on-year gain.
BRUSSELS (Reuters) – France’s Pierre Moscovici struggled to convince European Union lawmakers on Thursday that he could enforce budget rules that his own country has repeatedly breached, as the formation of a new European Commission turned into a bitter political battle.
The Socialist, who was finance minister in Paris until six months ago, promised to apply the bloc’s deficit rules equally to all euro zone states, including his own, if confirmed as economic and monetary affairs commissioner.
BRUSSELS (Reuters) – Three years ago, hardening euro zone fiscal rules was all the rage. Today, the game is how to fully use their “flexibility”.
The change shows how far the euro zone has traveled from trying to win back the confidence of investors at the peak of the sovereign debt crisis to winning back voters as radical parties rise amid record unemployment and economic stagnation.