Brussels Warns Eurozone Economy Faces ‘Host of Negative Risks’

The European Commission has warned that the bloc’s economy faces a “host of negative risks” in the second half of the year, even as it kept its growth projections for 2019 unchanged. Pierre Moscovici, the EU’s economy commissioner, said that surprisingly strong euro area growth in the first quarter of 2019 “will be entirely offset by a weakening during the rest of the year”, as a recovery in German auto sales fizzles out and one-off factors cease to apply, the Financial Times reported. The good performance in early 2019 was driven in part by stockpiling in the UK ahead of the original March 29 Brexit deadline and by the mild winter, said Mr Moscovici, as he presented the commission’s summer economic forecasts. Brussels expects growth of 1.2 per cent in the eurozone this year, and 1.4 per cent in the wider EU. Read more