Saturday 16 January 2021
Home ECB IMF and ECB warn of declining economic growth

IMF and ECB warn of declining economic growth

The International Monetary Fund (IMF) believes that the euro countries should take precautionary measures in case economic growth starts to stagnate. That chance has increased due to problems in the industrial sector, trade and because the European Central Bank has little money to boost the economy again, the IMF and ECB report in their quarterly reports.

Trade and industry weakness can spread to other industries. The IMF not only sees risks to economic decline but also expects a lower economic growth: 1.2 instead of 1.3 percent. The lower growth is mainly caused by the faltering German economy. The Germans suffer from the protracted trade war between the United States and China, the Brexit and the slowdown in the Chinese economy.

The Dutch and German governments must therefore spend more money to stimulate economic growth. Now that interest rates are so low, governments must take over, says the IMF. It is not unexpected that the IMF focuses specifically on the Netherlands and Germany in the report. From the financial markets there has been pressure on both countries for a long time to borrow and invest heavily. The national debt in the Netherlands is low compared to the other EU countries.

“With its budget surplus, the Netherlands should invest much more in infrastructure, education or innovation. By keeping a tight grip, The Hague could spur economic growth, "said Christine Lagarde, president of the European Central Bank in October, just before being appointed to her new position.

The European Commission warns about & #8220; turbulent & #8221; economic times in the near future. In its estimates, it is adjusting downwards growth forecasts for the eurozone for 2019 and the coming two years. According to Vice-President Valdis Dombrovskis, international trade conflicts, increasing geopolitical tensions, a persistently weak industry and the Brexit threaten the European economy.

The European Commission has also been concerned for some time about the possible consequences of US trade policy and the British departure from the EU. There is a threat of a longer period of moderate economy in the EU, according to Brussels. For this year, the committee expects an average of 1.1 percent growth for the euro countries, down from 1.2 percent in the earlier forecast.

Commissioner Dombrovskis called on the Member States to take action. He urged Member States with high government debts to reduce them and countries that can use their budget room. There is satisfaction with the EU about the further falling unemployment in the eurozone, on average 7.4 percent next year.


Catalan & #8216; rebel & #8217; Puigdemont is no longer allowed to enter European Parliament buildings

The former President of the Government of Catalonia, Carles Puigdemont, is no longer allowed to enter the buildings of the European Parliament after the ...

British House of Commons votes in favor of saying goodbye to EU, but does not state a date

The British parliament has approved the agreement that Prime Minister Boris Johnson concluded in Brussels earlier this month with the EU heads of government ...

Geschiedenis TV about fabrications of Boris Johnson as EU correspondent

The Dutch public broadcaster NTR will broadcast a television program on Wednesday about the lies, fabrications and fantasy messages of the then British correspondent Boris ...

Romanian president now re-elected; clear the way for the recovery of the pro-EU course

President Klaus Iohannis Romania was easily re-elected for a new term of office on Sunday. He defeated his socialist in a second ballot ...

Libyan peace council: iedereen ceases military support, they say

The participants in the Libya peace meeting in Berlin agreed on Sunday on compliance with a long-standing UN arms embargo, ...

Just in

Australian farmers want more foreign seasonal workers

Australia has announced a slight relaxation of work permits for foreign seasonal workers, but agricultural organizations are pushing for much more.

Farmers angry with supermarkets for being stunted with store food prices

To the anger of German dairy farmers, two dairy cooperatives have made new price agreements with supermarket chain Aldi about lower butter prices. With this, Aldi breaks previous ...

German pig breeders want to stop or restructure the exit premium

More than half of German pig breeders are very interested in obtaining appropriate financial compensation from the ...

Scottish seed potatoes are not just for export to the EU

The British potato industry is in talks with the European Union about relaxing the seed potato measure, but is not very hopeful about this.

Switzerland has the most protective forests in Europe

The wood stock in European forests has increased by more than ten billion cubic meters of wood over the past thirty years.