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EU economic chief Pierre Moscovici, right, with Portugal's new finance minister in Lisbon
There’s been a rare spate of good economic news for the eurozone recently, with Eurostat announcing last week that the currency union’s gross domestic product had finally returned to pre-crisis levels and was growing at a 0.6 per cent quarterly clip – enough to outpace the US or the UK so far this year. But growth remains uneven across the 19-member bloc, and the first quarter’s performance remains meagre by historical standards. As a result, it will likely not be enough to help eurozone countries currently finding it difficult to get their debt and deficit levels back under EU budget ceilings.
Those countries sparring with Brussels over such budget targets – France, Italy, Spain and Portugal – will be in the spotlight today when the European Commission issues its new economic forecasts, which will include predictions on whether any of them are making progress towards getting their deficits below the 3 per cent of GDP threshold or – in the case of Italy, which is already below the deficit ceiling – are cutting their debt piles fast enough.
Put it down to all those bankers and Eurocrats: Luxembourgers are once again Europe’s richest citizens.
The Grand Duchy’s gross domestic product per person is 283 per cent of the EU average, according to 2010 data released this morning by Eurostat — itself based in Luxembourg. That’s a whopping 6.6 times larger than Bulgaria, the bloc’s laggard, whose GDP per person is a mere 43 per cent of EU output.
That gap between richest and poorest is 0.2 points larger than last year both because Luxembourg’s GDP share rose (from 272 per cent) and Bulgaria’s dropped (from 44 per cent). All figures are adjusted for purchasing power changes, so exchange rates don’t factor in.
Three days of summitry between EU and Asian leaders wraps up Wednesday in Brussels with the only “deliverable” – diplo-speak for a concrete achievement – of the entire event: the signing of a free trade agreement between the EU and South Korea.
But frequently, these international talkfests are more interesting for the atmospherics than any deals that are struck, and this week the mood has been more telling than most. Read more