"The EU, in common with the rest of the global economy, is clearly experiencing the deepest recession since the 1930s", Director General Markus J. Beyrer said on publication of BusinessEurope's Spring Economic Outlook 2020. Our central forecast is for the EU economy to fall by around 8% in 2020, and rebound with around 6% growth next year. "As we progressively reopen our economies", Beyrer commented, "we will need to ensure we have a co-ordinated EU response in place to support consumer demand, business investment and maintain employment". A coordinated fiscal stimulus remains essential to strengthening the recovery and minimising the long-term scarring to the EU economy. With the right policy response in place, we expect that the economy can recover enough to operate just slightly below its pre-crisis level towards the end of 2021. Read the full document or watch our Economics Director James Watson explain the measures needed.

The immediate economic priority for the EU and its member states at the moment is to provide coordinated crisis response to the Covid-19 outbreak in order to maintain the essential functioning of our economy and preserve an intact business eco-system. But as we move from acute crisis management initiatives to the longer-term task of restarting growth and rebuilding our economy in the aftermath of the ongoing crisis, we will need to focus on economic and structural reforms that will unlock Europe’s economic potentials. BusinessEurope's 2020 Reform Barometer shows that the EU is lagging behind other major economies on a range of areas that are crucial to ensuring a strong and competitive economy.  Concerningly, the impetus for economic reform has been dented. Our member federations estimate that member states have satisfactorily implemented only 13 % of the essential reforms agreed with the EU, down from 20% last year. - Read more