EU faces potential permanent output loss

Europe is likely to suffer a permanent loss in potential economic output as a result of the global economic crisis, 2007-2009, and government finances will be under pressure for years to come, according to a new European Commission study issued July 2009.

The Commission’s report on the 16-nation eurozone’s economy represents the European Union’s first in-depth attempt to assess the long-term consequences of the crisis for economic growth and Europe’s public finances.

European Commission: DG Economic and Financial Affairs: ECFIN Economic Briefs, No.2, June 2009: Beyond the crisis: a changing economic landscape http://ec.europa.eu/economy_finance/publications/publication15471_en.pdf

---