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

The Commission's spring forecast confirmed on 5 May 2010 that the economic recovery is in progress in the EU. After having experienced the deepest recession in its history, the EU economy is set to grow by 1% in 2010 and 1¾% in 2011. This implies an upward revision of ¼ percentage point for this year from the Commission's autumn forecast, as the EU countries benefit from a stronger external environment. Nevertheless, weak domestic demand continues 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 this year at a lower level than forecast earlier, yet at close to 10% in the EU. The temporary fiscal measures put in place have 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.