The European Central Bank expects the Eurozone's economic recovery to proceed “slowly in 2014 and 2015”. The central institute notes this in its monthly bulletin, emphasizing that the recovery of the currency union will be favored by "some improvements in domestic demand", as well as by monetary policy, which will continue to be accommodative for a long time to come.
Faced with inflation destined to remain low, in fact, the ECB "forcefully reiterates its orientation to keep interest rates at current levels or lower for an extended period of time". Furthermore, the Eurotower guarantees that it is ready, "if necessary, to adopt other decisive measures" against the risks of destabilizing prices.
As for the labor market, "the latest trends therefore clearly indicate that a stabilization phase is underway after a prolonged period of decline", continues the Frankfurt institute, specifying however that "the data reveal a modest trend in the near future ”.
Average unemployment in the euro area, at 12,1%, although stabilized, "is 4,8 percentage points higher than in March 2008, when the rate was at a cyclical low before the start of the financial crisis".
