Forecast: Economy might be harder hit than predicted by the European Commission forecast

By the EESC Employers' Group

In response to the  European Commission's recently published Autumn 2020 Economic Forecast, the Employers' Group issued a statement on the initiative of its president Stefano Mallia. The Group concurred with the European Commission's Autumn 2020 Economic Forecast, which stressed that Europe's economic rebound has been interrupted by the resurgence of the pandemic. However, it underlined that the current high level of uncertainty could make the Autumn Economic Forecast less accurate and that the economy might be even harder hit than predicted by the European Commission.

In order to reboot the economy, the Employers' Group called, among other things, for the following measures:

  • Fostering innovation and empowering start-ups will help not only to protect current jobs, but also to create new ones, closing the existing gap between those who have a job and those who don't.
  • Particular attention must be paid to solvency tools, where needed, to support viable firms suffering from liquidity squeeze, while helping companies that have become obsolete wind down in an orderly way. We agree that the best policy response is to deliver on the expectations of the NextGenerationEU.
  • A synchronised fiscal push to improve prospects for all. Fiscal policy must play a leading role in the recovery, making sure that the level of expenditure does not unnecessarily compromise fiscal soundness.
  • It is imperative that both sides in the EU-UK negotiations remain committed to delivering a timely agreement that provides a sound competitive environment for companies, combining good market access with level playing-field provisions.

The full statement can be found via!nK46cT