27th Jan 2021

Eurozone economic confidence rises

  • The recession in Spain is easing new figures show (Photo: Valentina Pop)

Economic confidence in the 17-nation eurozone rose in July reaching the highest point since April last year.

The European Commission's monthly measurement of sentiment among consumers and businesses rose to 92.5 from 91.3 in June.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

It is the third consecutive month to register a rise, and indicates that businesses are more willing to invest and consumers more willing to spend.

The commission's data, released Tuesday 30 July, showed that economic confidence grew in four of the eurozone's five biggest economies, with Italy registering the greatest increase. The Netherlands, by contrast, showed a weakening of sentiment.

But the positive news is tempered by the unemployment rate which is at record high (12.1%) in the eurozone. Coupled with the austerity measures being imposed by governments, driving down demand, any economic recovery is set to be patchy.

Meanwhile the commission's data coincided with data showing that the recession in Spain - the eurozone's fourth largest economy - is easing.

Figures released by the Madrid-based National Statistics Institute show that the Spanish economy contracted for the eighth quarter in a row, but at a slower rate.

The country's gross domestic product contracted 0.1 percent between April and June. In the previous quarter it contracted 0.5 percent while the fourth quarter of 2012 saw a contraction of 0.8 percent.

The figures lend credibility to the government's claims that the country will return to growth in 2014.

The fragile signs of recovery mean that the European Central Bank is unlikely to resort to further stimulus measures when it meets Thursday but will keep its record-low interest rate (0.5 percent) unchanged.

Vietnam jails journalist critical of EU trade deal

A journalist who had demanded the EU postpone its trade deal with Vietnam until human rights improved has been sentenced to 15 years in jail. The EU Commission says it first needs to conduct a detailed analysis before responding.

Budget deal struck, with Hungary threat still hanging

Ultimately, the European Parliament managed to squeeze an extra €16bn in total - which will be financed with competition fines the EU Commission hands out over the next seven years, plus reallocations within the budget.

Stakeholders' Highlights

  1. UNESDAEU Code of Conduct can showcase PPPs delivering healthier more sustainable society
  2. CESIKlaus Heeger and Romain Wolff re-elected Secretary General and President of independent trade unions in Europe (CESI)
  3. Nordic Council of MinistersWomen benefit in the digitalised labour market
  4. Nordic Council of MinistersReport: The prevalence of men who use internet forums characterised by misogyny
  5. Nordic Council of MinistersJoin the Nordic climate debate on 17 November!
  6. UNESDAMaking healthier diets the easy choice

Latest News

  1. Giuseppe Conte: scapegoat or Italy's most cunning politician?
  2. Borrell to meet Lavrov, while Navalny behind bars
  3. Too few central and eastern Europeans at top of EU
  4. Rift widens on 'returns' deadline in EU migration pact
  5. EU adds new 'dark red' zone to travel-restrictions map
  6. Migrants in Bosnia: a disaster foretold on EU doorstep
  7. Navalny protests sharpen EU sanctions talks
  8. Why Russia politics threaten European security

Join EUobserver

Support quality EU news

Join us