Fiscal rules holding back European economies
New Economics Foundation responds to latest figures which show GDP grew 0.1 in euro area
14 February 2025
The EU’s fiscal rules are preventing countries from making the investments that will improve peoples’ lives, the New Economics Foundation (NEF) has warned.
Responding to new stats published today which show that GDP grew by 0.1% in the euro area and 0.2% in the EU, Sebastian Mang, senior policy officer at NEF, said:
“Today’s growth figures show Europe’s economy needs a real boost — but right now, unnecessarily strict EU fiscal rules are holding countries back from making the productive investments needed for long-term prosperity.
“The result is weaker public services, stagnant wages, and businesses not making the most of opportunities, including in the green transition.
“We need a break from the status quo — governments and central banks must work together to increase public and private investments and keep prices low.”
ENDS
Contact
James Rush – james.rush@neweconomics.org
Notes
A flash estimate published by Eurostat shows that in the fourth quarter of 2024, GDP increased 0.1% in the euro area and by 0.2% in the E, compared with the previous quarter.
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Topics Macroeconomics
