Pessimistic Olli Rehn warns economic threat to EU recovery
CONTINUING turmoil on the financial markets is in danger of threatening the EU’s economic recovery, according to a worried commissioner Olli Rehn.
The warning from EU Monetary Affairs Commissioner came after a turbulent summer for markets across the globe.
Investors are worried about a potential new recession in the US, the Eurozone’s ability to sort out its debt crisis and the state of creaking European banks.
“The financial markets and the real economy move now more in synchrony, which makes me seriously concerned about continued financial turbulence spilling over to and potentially harming the recovery of the real economy,” Mr Rehn told EU politicians.
Only recently Mr Rehn had claimed that growth in the EU was strengthening, despite nervous markets.
The Commission now has a more pessimistic view of economic growth in the EU.
Mr Rehn added that a new economic forecast will be released on September 15.