The fragile European economic recovery seen in the second quarter should continue into next year and become more solid, the European Commission’s top economics official told Reuters on Thursday.
Olli Rehn said greater fiscal credibility in euro zone countries, action by the European Central Bank to stabilize markets and better economic governance had all strengthened the currency bloc’s ability to withstand political shocks.
“The euro zone is less sensitive to political turbulence,” Rehn said in an interview, contrasting its current state with its previous greater vulnerability to derailment by such upsets as Italian and Greek political turmoil or the Cyprus debt crisis.
“The recent both hard data and soft indicators on consumer confidence and purchasing managers’ expectations are supportive of a subdued sort of recovery this year and a somewhat more solid recovery next year,” he said.
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