EU notes progress in the economy

Despite the increased uncertainty due to the war in Ukraine, the management of the Greek economy is evolving positively, according to a eurozone official who spoke to reporters on Thursday in Brussels.

“What I hear is that Greece’s progress is appreciated to a significant degree” in the context of the enhanced surveillance, he responded to a question from Kathimerini. He added he does not foresee any difficulties in the “smooth transition” of Greece to a normal relationship with the European institutions after “so many years.”

The same official forecast that growth in the European Union “will be significantly reduced this year.” There is great uncertainty, he noted, but the war “will inevitably aggravate economic activity” and increase inflation further, while the pandemic “is not over yet” and the problems in supply chains have not vanished.

He argued that one cannot rule out the possibility of a technical recession within 2022 (i.e. two consecutive quarters of contraction), but the sum for the year will be positive. He added that the possible extension of the general opt-out clause from the Stability Pact will not be discussed in this Monday’s Eurogroup.