The European Commission presented its Spring economic forecast on Tuesday (5 May), expecting that real GDP in 2015 will rise by 1.8 % in the EU and by 1.5 % in the euro area, 0.1 and 0.2 percentage points higher than projected three months ago.
According to the EU executive, Europe’s economies are benefitting from a number of key factors, including relatively low oil prices, steady global growth, and currency fluctuation.
“The economic activity is benefiting from a number of favourable winds, namely the low price of oil, the substantial depreciation of the euro and the positive effects of the quantitative easing programme which was implemented by the ECB. Generally, these favourable winds, together with a neutral budgetary rule in the eurozone and the EU generally, should strengthen growth this year and (be) supported in the coming year,” Economic Affairs Commissioner Pierre Moscovici said.
Moscovici also said that the quantitative easing programme launched by the European Central Bank is having a significant impact on financial markets, contributing to lower interest rates and improving credit conditions.