The European Commission releases its latest economic forecasts on the euro area region - 6 May 2020
- 2020 euro area GDP seen at -7.7%
- 2021 euro area GDP seen at +6.3%
- 2020 Germany GDP seen at -6.5%
- 2021 Germany GDP seen at +5.9%
- 2020 France GDP seen at -8.2%
- 2021 France GDP seen at +7.4%
- 2020 Italy GDP seen at -9.5%
- 2021 Italy GDP seen at +6.5%
- 2020 Spain GDP seen at -9.4%
- 2021 Spain GDP seen at +7.0%
The commission warns that the EU is facing its deepest economic downturn in history, which threatens the very future of the euro currency if the crisis is badly handled.
Officials warned that the crisis risks widening the divide between northern and southern euro nations and that could push the bloc to a breaking point because of differing exposures to tourism and governments' capacity to support businesses/households.
"Such divergence poses a threat to the single market and the euro area - yet it can be mitigated through decisive, joint European action."
It seems like the commission is realising that the risks of a blowup in the euro could be very real and even more so now that Germany is trying to stir the pot and creating more trouble after the court ruling on the ECB QE program yesterday.
