BusinessEurope forecasts a real EU GDP growth of 1.2% in 2010, after a fall of 4% in 2009. Nevertheless, the confederation assesses the situation in the EU as being unstable and uncertain. It predicts that EU’s public indebtedness will be still rising. It is to average 80% of the GDP this year.

It points out that EU governments need to restore confidence in the solidity of public finances without delay. The key issue is to maintain advantageous financing terms, limit the risk of financial contagion and to strengthen the trust of companies and households.

It also urges action to tackle the question of speculative attacks, among others by EU institutions taking initiatives to assure joint fiscal and financial stabilisation. However, such undertakings cannot be expected to substitute requisite adjustment measures at national level. Governments of the respective member countries should take firm action to counter existing fiscal imbalances and subject themselves to the rigorous supervision by the European Commission and Council.

As Philippe de Buck, Director General of the BuisnessEurope conference pointed out, “recent events have shown that public intervention in the economy has reached limits of its effectiveness. To maintain growth and create new jobs, European governments have to restore competitiveness of public finances in their countries and implement far–reaching reform”.

BusinessEurope – the Confederation of European Business represents more than 20 million small, medium-sized and large companies. Active in European affairs since 1958, BusinessEurope members are 40 central industrial and employers’ federations from 34 countries, working together to achieve growth and competitiveness in Europe.