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The European Commission previously suggested that the EU's GDP would drop by 8.7% in 2020 and rise by 6.1% in 2021. The eurozone economy would fall by 8.3% in 2020 and advance by 5.8% in 2021. However, while making the calculations, economists did not take into account a prolonged quarantine.
Thus, the crash will be significantly stronger than expected. Thus, a slump of 7.7% is forecast for the eurozone and a 7.4% decline for the EU as a whole. Growth in 2021 would also be less strong than expected.
European Commissioner for the Economy Paolo Gentiloni said that a rise in the eurozone economy should not be expected until 2021. He also noted that Italy, Spain and France will suffer more than others.
The European Commission has developed a plan of economic recovery in all European countries. However, there are concerns that some countries will be able to cope with the crisis. Brussels is trying to ensure that all countries in the eurozone were at the same level of welfare.
Updated forecasts do not take into account the second wave of the coronavirus. This is the main problem for Brussels. Nevertheless, the European Commissioner is confident that EU leaders will be able to reach an agreement and the recovery plan will be approved.
Next week, the first meeting of the heads of states after the outbreak of COVID-19 will take place in Brussels.
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