European Growth Outlook 11/2016

European economy holds up. Growth stimuli needed

The economy of the EU is set to grow by 1.7 percent in 2016; the economy of the Euro area by 1.6 percent. Brexit initially threw the markets off course, setting off a wave of volatility. However, the ensuing slumps on the financial markets have now balanced out. On a national level, we need to see more stimulus from industrial and innovation policy. This could be achieved by three or four large member states without a full vote in the EU bodies.