Press Release: Spring forecast 2010-11: gradual economic recovery in progress in the EU

The European Commission's spring forecast on 5 May 2010 confirmed that the economic recovery was in progress in the EU. After having experienced the deepest recession in its history, the EU economy was set to grow by 1% in 2010 and 1¾% in 2011. This implies an upward revision of ¼ percentage point for 2010 from the Commission's 2009 autumn forecast, as the EU countries benefit from a stronger external environment.

Nevertheless, weak domestic demand continued to restrain the recovery further out. The speed of recovery is forecast varies across Member States, reflecting their individual circumstances and the policies they pursue. Labour market conditions have shown some signs of stabilisation recently, with the unemployment rate projected to peak in 2010 at a lower level than forecast earlier, yet at close to 10% in the EU. The temporary fiscal measures put in place had been key in turning the EU economy around, but also added to the public deficit, which is set to rise to 7¼% of GDP in 2010, before falling back slightly in 2011.

European Commission: DG Economic and Financial Affairs: European Economy, No.2, 2010: European Economic Forecast - Spring 2010 http://ec.europa.eu/economy_finance/publications/european_economy/2010/ee2_en.htm

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