Dáil Éireann Debate, Wednesday - 5 July 2017
91. Deputy Bernard J. Durkan asked the Minister for Finance if he unilaterally or in discussion with his EU colleagues has identified particular threats to the European economy for countries in the eurozone and outside; if particular action is required in this regard; and if he will make a statement on the matter. [31763/17]
View answerAs Minister for Finance, I attend the Economic and Financial Affairs Council of the European Union (ECOFIN) which is responsible for EU policy in areas including economic policy. I also attend meetings of the Eurogroup, where the ministers of the euro area member states discuss matters concerning their shared responsibilities related to the euro. Its main task is to ensure close coordination of economic policies among the euro area member states. At both the ECOFIN and Eurogroup meetings, Ministers of the member states working alongside the European Commission and the European Central Bank (ECB) take stock of the latest economic situation in the EU and euro area, including on the risks to the European economy’s growth prospects.
The European economy is performing well, despite a number of challenges, as economic expansion continues in 2017 following four years of steady but moderate growth. The gradual recovery has been supported by a number of factors including sound macroeconomic policies, strong business and consumer confidence and a gradual improvement in world trade.
As highlighted in the European Commission’s Spring Economic Forecast 2017, risks to the European economy are more balanced than earlier in the year but are still tilted to the downside. Uncertainty related to the process of the UK leaving the EU continues to pose non-negligible downside risks. Bank fragilities in the euro area remain a concern even though the banking sector is now in better shape than a few years ago. In addition, policy uncertainty in the US and risks to the global outlook remain elevated.
Given the modest pace of growth, still high unemployment levels across the EU and external policy uncertainty, there are clearly no grounds for complacency.
