If this email does not display properly, please click here
European Commission - Economic and Financial Affairs European Commission - Economic and Financial Affairs
Quarterly report on the euro area © Thinkstock.com Corporate balance-sheet adjustment ‘will influence recovery’
- Rehn calls for global exchange-rate cooperation
- Tax report studies implications of crisis for revenue systems
- Confidence levelling off and speed of recovery variable, indicators suggest
- Eurogroup underlines Irish and Portuguese resolve
- Annual report on macro-financial assistance points to increased demand for EU support
- European Union looking to become the Innovation Union on the road to Europe 2020
Publications
Agenda
Calls
Top News
Quarterly report on the euro area © Thinkstock.com Corporate balance-sheet adjustment ‘will influence recovery’

The adjustment of corporate balance sheets currently underway in the euro area should be accompanied by measures to strengthen the banking sector and to front-load growth-enhancing economic reforms. This is the message that emerges from the latest quarterly report on the euro area published by DG ECFIN, which includes a focus on balance-sheet adjustment in the corporate sector. Since the beginning of the global recession, corporations in the euro area have significantly reduced their borrowing from the rest of the economy through balance-sheet adjustments and have even turned into net lenders. Previous episodes suggest that such adjustments tend to be associated with lasting adverse macroeconomic consequences such as low output growth.

Viewpoint
"
Overall, mixed developments in the financial sector contrast with the generally positive developments for the real economy of the euro area, which, while still fragile, is recovering at a faster pace than previously envisaged.

Marco Buti, Director-General for Economic and Financial Affairs
"
More
More news
European Commissioner for Economic and Monetary Affairs Olli Rehn ©European Commission
Rehn calls for global exchange-rate cooperation

Greater international cooperation on exchange-rate policy is needed to avoid exchange-rate volatility and achieve balanced economic growth, European Commissioner for Economic & Monetary Affairs Olli Rehn has stressed. Speaking in an interview with Reuters during the 8-10 October IMF-World Bank annual meetings in Washington DC, Rehn said the EU was discussing with partners the possibilities for advancing such cooperation in the G20 and IMF. "In order to achieve a rebalancing of global growth, which is the main message of the IMF annual meetings, there is a need to address the currency issue as well; exchange rates should reflect economic fundamentals," Rehn told the news agency.
More
Tax report © iStockphoto.com
Tax report studies implications of crisis for revenue systems

The consequences for revenue systems of the global economic and financial crisis are examined in detail in the latest analysis of recent trends in tax revenues and tax reforms in EU Member States, prepared jointly by European Commission DGs ECFIN and TAXUD. Apart from analysing elements of the tax systems that could have contributed to the crisis, the report looks at how revenue increases and tax systems in general could be designed in a growth-friendly way. It also contributes to the ongoing discussion on financial sector taxation.
More
Economic Sentiment Indicator © iStockphoto.com
Confidence levelling off and speed of recovery variable, indicators suggest

Rising confidence among industry and consumers could be levelling off, while the pace of economic recovery appears to be varying between countries, according to the latest set of European Business Cycle Indicators. The indicators for September 2010 published by DG ECFIN showed sentiment in industry nudging up a further 1 point in the euro area, but the recent trend suggests the pace of the economic recovery in industry might be slowing. Confidence among consumers is also showing signs of levelling off (with divergent patterns across countries), slightly above its long-term average in the euro area. Economic sentiment indicators for the four largest euro-area countries and the UK continue to suggest diverging trends, pointing to different speeds of recovery.
More
Jean-Claude JUNCKER, Luxembourg Prime Minister, President of the Eurogroup © The Council of the European Union
Eurogroup underlines Irish and Portuguese resolve

Fears that further euro-area countries might need financial assistance to alleviate budgetary and financial difficulties appeared to recede at the end of September as the Eurogroup effectively backed Ireland and Portugal to take the necessary steps. In a statement issued on 30 September, the Eurogroup expressed confidence that Ireland would deliver a revised multi-annual adjustment programme to bring its deficit under the 3% target by 2014 and put its public finances on a sustainable path. It said there was no immediate additional financing need for the Irish budget. In a separate statement issued the same day, the Eurogroup welcomed additional consolidation measures adopted by the Portuguese government and urged Lisbon to pursue structural reforms.
More
Annual report on macro-financial assistance © iStockphoto.com
Annual report on macro-financial assistance points to increased demand for EU support

The global recession contributed to an increased demand for EU macro-financial assistance as a short-term instrument to help neighbouring countries respond to financial crisis, deal with balance of payments and budgetary deficits and put their economies back on a sustainable growth track. This is according to a report on the implementation of macro-financial assistance to third countries in 2009 adopted by the European Commission. In 2009, the EU took decisions providing for macro-financial assistance to Armenia, Bosnia & Herzegovina, Georgia and Serbia, and it made disbursements to Georgia (grant) and Lebanon (loan).
More
Innovation © Stephen Coburn - Fotolia.com
European Union looking to become the Innovation Union on the road to Europe 2020

Plans have been tabled to create a new “Innovation Union” as a flagship part of the Europe 2020 Strategy that aims to achieve smart, sustainable and inclusive growth in the EU. Economic and financial aspects are an important feature of the plans put forward on 6 October by the European Commission. The Commission announced, for example, that it would bring forward measures to improve access to finance; the EU’s structural-funding and state-aid frameworks would be reviewed to boost innovation; and governments should set aside dedicated budgets for public procurement of innovative products and services. Among other key elements, a new indicator would be developed on the share of fast-growing innovative companies in the economy.
More
Publications


 
2010 Pre-accession Economic Programmes of candidate countries: EU Commission assessments, Occasional Paper 69
The paper assesses the annual Pre-accession Economic Programmes submitted by Croatia, the former Yugoslav Republic of Macedonia and Turkey, which cover the period 2010-2012. The programmes show the three governments' intentions to advance structural reforms, productivity gains and alignment with the EU acquis and EU best practices that will allow sufficiently high growth to catch up with the EU and prepare for membership. However, the paper finds that the degree of ambition and precision in policy implementation across the programmes is not uniform.

Resilience of Emerging Market Economies to Economic and Financial Developments in Advanced Economies, Economic Paper 411
Estonia: towards a swift current account rebalancing, Country Focus 6/2010
More
Agenda Calls
18-19 October
Luxembourg
Eurogroup/ECOFIN Council
28-29 October
Brussels
European Council
11-12 November
Seoul, Korea
G20 Summit
22-23 November
Brussels
DG ECFIN 7th Annual Research Conference 2010
29 November
Brussels
European economic forecast autumn 2010
16-17 December
Mumbai, India
ASEM Conference: Investment and its Financing
18 May 2011
Brussels
BEF 2011 – The Brussels Economic Forum 2011
Open invitation to tender ECFIN/R3/2010/012 - For conclusion of Multiple Framework Contracts in Competition for the provision of evaluation and evaluation related services to DG ECFIN, including support for impact assessment activities (deadline for submission: 22 October 2010)
Call for proposals ECFIN/A3/2010/020 - Joint harmonised European Union programme of business and consumer surveys in the 27 EU Member States and in the candidate countries: Croatia, the former Yugoslav Republic of Macedonia, Turkey and Iceland (deadline for submission: 8 November 2010)
More More
Beyond this newsletter
RSS Twitter Contact Subscribe Unsubscribe
Directorate-General for Economic and Financial Affairs