Europe's economy started to recover during 2006. The improvement of Germany's economy, with an expected growth between 1.7 and 2 per cent, has much to do with that. According to the European Commissioner for Financial and Currency Affairs, Mr. Joaquín Almunia, other countries will benefit from that, and he also expressed his hopes that the over-the-average growth of some of the member countries of the European Union (EU) will be mantained. Furthermore, this will positively contribute to improve the political atmosphere surrounding the Treaty for a new European Constitution.
During his speach last Friday 2nd June in the morning session of the ELEC's Central Council, held in Barcelona, Mr. Almunia admited that the situation has still room for improvement. For the time being, he said, in 2007 the inflation will remain stable between 2.1 and 2.1 per cent, but it will not reduce to the RPI level.
Risks Control
The described situation does not come without risks. Concerning oil prices, markets anticipate that next year they will remain much the same as 2006. Concerning competitiveness in a globalized world, Mr. Almunia believes in the need to cooperate with countries such as China as a mesure to avoid Europe's loosing against negative global balances. Concerning China, the European Commissioner stated that the country is starting to work towards increasing its internal demand, which is the EU's main worry in its relationship with the Asian giant.
The members of the ELEC didn't forget to ask him about the risks of the financial markets. Mr. Almunia noted that European and national institutions must control their development, while coordinating strategies in that field. And he didn't forget either to remind member countries of the need to comply with the Lisbon commitments in order to guarantee the expected growth.
Mr. Almunia was optimistic that Europe will face with guarantees a globalized financial environment, with strong European institutions that will be able to deal with problems like immigration, energy policy and innovation. That is why the European Commissioner believes that, at a certain moment, that same message will have to be transmited to the countries that are still unsure about endorsing the new European Constitution proposal.
Mr. Almunia did not forget to congratulate the ELEC's Spanish Committee in it's 50th anniversary, and he recalled the work done by its members under Franco's regimetowards the Europeanization of a country that was distrustful of its neighbours.
ELEC's President, Mr. Anton Van Rossum; the President of the Spanish Committee, Mr. Carles A. Gasòliba, and its VP and President of Banco Sabadell, Mr. Josep Oliu, shared a table with the European Commissioner during his speach.