Europe's economy recovering, but long way from catching up with US, says UNICE 

The economic situation of the EU is improving, but recovery is still fragile and seems to depend on external growth (especially in the US), a stabilisation of the value of the euro as well as a strengthening of confidence in spite of the possibility of new terrorist actions. This is the finding of the half-yearly Economic Outlook published by UNICE, based a survey carried out by its member federations in the 15 Member States.

Slightly better than predicted in the autumn (see

EurActiv 14 October 2004), the EU's growth rate for 2004 is now estimated to reach 2.0 per cent. Moreover, UNICE expects stronger and more homogeneous growth in 2004 than in 2003 with a declining inflation rate and better price stability. However, Europe is still not catching up with the US and Japan in terms of growth and employment.

Enlargement is expected to have a positive impact on the EU's economy, as it will bring more competition and growth opportunities. Both current and new Member States are now urged to implement structural reforms in line with the Lisbon strategy.

“Despite the slightly positive general assessment, Europe is still losing ground due to structural weaknesses. Burdensome regulations, insufficient R&D spending and structural rigidities are hampering European competitiveness. Our recommendation: play to win! Implement the Lisbon Strategy!” concludes Philippe de Buck, UNICE's Secretary General. This remark is also addressed to the heads of state and government meeting in Brussels on 25-26 March 2004 to discuss how to boost European competitiveness.