Commission forecasts inflation tumbling, despite oil price hike

Inflation could be just 2.2% in the EU next year, as voters cite concerns over rising prices.

Transcript

00:00 Despite a price increase in major commodities such as crude oil, economic forecasts say

00:06 inflation is declining. The European Commission says that EU inflation will fall to 2.7 percent

00:12 this year after reaching a high of around 10 percent after the pandemic and Russia`s

00:17 war in Ukraine, which massively impacted the economy. This time next year, inflation could

00:22 be at 2.2 percent in the EU. European Commissioner for Economy Paolo Gentiloni told Euronews

00:28 that while this is good news for the EU, it will take some time to see its effects.

00:32 We need that the decline of inflation produce its consequences overall on food prices, et

00:43 cetera. This will take some time. Equally important is that the level of credit provided

00:52 by banks restart increasing, because this is important to fuel the economy.

01:04 The commission says the economic outlook shows increased uncertainty and downside risks,

01:09 mainly stemming from the evolution of Russia`s war in Ukraine and the conflict in the Middle

01:13 East. Broader geopolitical tensions also continue to pose risks, but these are not the only

01:18 risks.

01:19 If the president would remain, maybe he would remain.

01:23 In this difficult crossroads where growth is restarting, you adopt too restrictive fiscal

01:36 stance and you miss part of the investments that are needed. How to avoid this without

01:46 breaking our fiscal policies and our budgets? My answer is still next generation EU.

01:57 The commission`s spring forecast comes 20 years after the EU`s 2004 enlargement, which

02:03 saw the bloc`s largest expansion to date. The 10 states that joined at the time saw

02:09 significant upticks in their GDP and real incomes as they underwent the EU accession

02:14 process, a positive message for EU hopefuls.

02:18 (whooshing)