The shadow of the pandemic is beginning to lift in Europe as the European Commission presented Wednesday a more upbeat assessment of how the 27 economies of the European Union will perform this year, citing an improved vaccination campaign and the expectation that EU-wide fiscal stimulus will kick in the second half of 2021, according to a CNBC report.
The Brussels-based institution now foresees a gross domestic product rate of 4.2% for the EU in 2021, and of 4.4% for next year. In February, it said GDP would be 3.7% this year and 3.9% in 2022.
The prospects for the 19 countries that share the euro have also improved. Growth is now estimated at 4.3% this year, instead of 3.8% as forecast in February. The European Central Bank said in March that GDP would reach 4% in the euro area this year.
Greece is welcoming tourists from Friday onward. Belgium said on Tuesday that it intends to end almost all restrictions on June 9. The land border between Portugal and Spain has also reopened.
These are just some examples of how the economies are opening up ahead of the summer season, when many tourism-dependent nations will be hoping to attract more foreign visitors than last year.
However, there are structural issues still to address. Greece’s public debt pile is set to reach 209% this year, Italy’s at 160%, and France’s at 117.4%.