Europe’s Economy Needs to Grow More Quickly, Donohoe Says

(Bloomberg) -- Europe’s economy needs see faster growth, Eurogroup President Paschal Donohoe said Friday.

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“As we get inflation down, I want to see the euro-area and Europe grow quicker,” he told Bloomberg Television on Friday. “I believe we can do it but we need to take further steps to make that happen”.

The euro-area expanded 0.3% in the first quarter, exiting a shallow recession thanks to stronger than expected showings in its major economies. The European Commission sees the region grow 0.8% this year and 1.4% in 2025.

ECB President Christine Lagarde said last month that the euro zone economy is “recovering and we are clearly seeing signs of recovery.”

It follows governments spending freely during the pandemic and the energy crisis that followed Russia’s invasion of Ukraine. The International Monetary Fund said this week that as that recovery happens, countries should be more ambitious in consolidating their finances.

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