EU Commission welcomes GDP data, outlook fragile

BRUSSELS (BestGrowthStock) – The European Commission welcomed data on Friday showing strong economic growth in the euro zone in the second quarter of the year but said the recovery in the currency area remained fragile.

Commission spokesman Amadeu Altafaj said that while the figures — which showed the economy expanded 1.0 percent quarter-on-quarter — were encouraging, euro zone economies still needed to focus on fiscal consolidation and structural reforms, which could have an impact longer-term.

“It’s a promising figure, it confirms that recovery is on track, both in the euro area and the European Union,” Altafaj told reporters.

“However, as we said in the past and we don’t change our assessment … it’s still fragile. There are elements of uncertainty which we should not ignore.”

With many euro zone countries committed to reducing their budget deficits and bringing their debt levels down, spending cuts are likely to be a drag on growth in the months ahead.

“No relaxation is possible. We are of course very sensitive to the implementation of the fiscal consolidation measures and their possible impact on … growth, on general recovery,” he said.

EU Commission welcomes GDP data, outlook fragile