Extracts from the press conference by Olli Rehn on the autumn economic forecasts for 2012-2014 (Spain, Greece, Portugal)

Type: Summary of press conference   Reference: I-075161   Duration: 10:03:14  Lieu:
End production: 07/11/2012   First transmission: 07/11/2012
On 7 November 2012, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, presented the economic autumn forecast for 2012-14 in the Euro area. The short-term outlook for the EU economy remains fragile, but a gradual return to GDP growth is projected for 2013, with further strengthening in 2014. On an annual basis, GDP is set to contract by 0.3% in the EU and 0.4% in the euro area in 2012. GDP growth for 2013 is projected at 0.4% in the EU and 0.1% in the euro area. Unemployment in the EU is expected to remain very high. The large internal and external imbalances that built up in the pre-crisis years are being reduced, but this process continues to weigh on domestic demand in some countries, and economic activity diverges significantly across Member States. At the same time, competitiveness lost in the first decade of Economic and Monetary Union (EMU) in some Member States is being gradually restored, so that export growth is projected to increase progressively as global trade starts reaccelerating. Further progress in consolidating public finances is underpinning this rebalancing process. The structural reforms undertaken should begin to bear fruit over the forecast period, while advancements in the EMU architecture continue to strengthen confidence. This should pave the way for a stronger and more evenly distributed expansion in 2014. GDP growth in 2014 is projected at 1.6% in the EU and 1.4% in the euro area. This video shows extracts from the European Economic Forecast for Spain, Greece and Portugal.

Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
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10:00:00 Title 00:00:05
10:00:05 Soundbite by Olli Rehn, Member of the EC in charge of Economic and Monetary Affairs, (in ENGLISH): Concerning Spain, it is true that our forecast for 2014 is well above the fiscal targets for this year and that is why we have encouraged them in Mexico 2 days ago, I spoke to de Luis Guindos Jurado, Spanish Minister for Economy and Competitiveness, to substantiate the measures of fiscal consolidation for 2014. 00:00:31
10:00:36 Cutaway of the audience 00:00:03
10:00:40 Soundbite by Olli Rehn (in ENGLISH): Concerning this year and next year, we are currently assessing whether effective action has been taken by Spain, measures has I said previously, as structural fiscal efforts not only as nominal headlines targets. 00:00:19
10:00:59 Cutaway of journalists 00:00:03
10:01:03 Soundbite by Olli Rehn (in ENGLISH): There is no denying that it is increasingly unsustainable without further measures of reducing this debt bargain. And that is why, now following the decisions, we have four chapters before the next divestment can move and the program be on track again. The first two chapters - fiscal and structural -will be voted in the Greek Parliament, first tonight, the structural and, during the weekend, the package of fiscal measures. But we also need an agreement on financing needs and debt sustainability. 00:00:53
10:01:56 Cutaway of journalists 00:00:04
10:02:01 Soundbite by Olli Rehn (in ENGLISH): In October, at the proposal of the Commission, the Council decided to extend the correction of the deadline for the excessive deficit for Portugal until 2014. This was fully in line with the logic of focusing on the structural sustainability of the Stability and Growth Pact. 00:00:29
10:02:30 Cutaway of journalists 00:00:04
10:02:34 Soundbite by Olli Rehn (in ENGLISH): The Portuguese programme is well on track and we see that it is very important now to focus on the implementation of the programme with a national consensus because there is an experience of what recent years have shown in Portugal as well as in other programme countries like Ireland, that prove that national consensus is a key factor for the success of the economic reform programme. 00:00:39
10:03:14 General view of the audience 00:00:04
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