MNI BRIEF: Gentiloni: EU Growth Will Not Hit Spring Forecasts

It is becoming clear that the impacts from the war in Ukraine meant the EU would not now achieve the 4% GDP growth 2022 forecast in the Commission’s Winter Forecast, Economy Commissioner Paolo Gentiloni said Tuesday, echoing earlier comments from Italian undersecretary to the economy Maria Cecilia Guerra.

With large spending increases seen as needed to bolster Europe’s new defence capabilities, Gentiloni accepted this will require more supportive fiscal rules. Speaking in Oxford, Gentiloni said that the EU defence needs will require significant new investments in industry and technology: “Financing them will require a more supportive framework of fiscal rules and potentially new tools at European level.”