EU Expects Slowdown In Eurozone Economy In 2020
The Eurozone economy continues to grow, albeit at a slow pace due to « negative risks, » follows from the winter forecast for the economic situation in the EU, presented on Monday by the European Commission.
« Although some of these risks have slightly decreased, including those associated with Brexit and trade tensions, the recent outbreak of coronavirus has given cause for concern, and we should carefully monitor it, » said Eurogroup chairman Mario Centeno at the end of a meeting, commenting on the winter forecast.
He said that the ministers of economics and finance of the Eurogroup countries agreed to coordinate any measures necessary for a political response to the slowdown. They began to discuss options for “euro area recommendations,” including five priorities for 2020. Among them are structural reforms, financial stability and public investment, labor markets and social integration, financial stability and the deepening of the economic and monetary union. It is also planned to focus on environmental sustainability.
The Council of Ministers of Economy and Finance of the EU (Ecofin) is expected to formally accept these recommendations on Tuesday.
In addition, according to Centeno, the ministers of economics and finance of the Eurozone countries discussed a set of general principles and guidelines for the tax wedge (indirect taxes on entrepreneurs and payroll taxes). He spoke about plans to reduce labor taxes in the EU, the level of which is one of the highest in the world, and transfer it to other forms of taxation, in particular, to environmental taxation.