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In the economy fighting Europe, concerned economists – and senior policy of the European Central Bank Mario Centin, the echo that is considering.
“I am very concerned about the European economy,” CNBC said on Friday, which is also the governor of Portugal.
On Thursday, the ECB revised its gross expectations for the eurozone to increase by 0.9% in 2025, which decreased compared to the previously predicted 1.1%. Seasonal GDP at the seasonal level of the euro -zone has recently increased by 0.1% in the fourth quarter.
Centeno linked the revision of growth down with a decrease in export and investment, repeating the ECB statement.
“I think special investments in Europe are quite muted. It will take four years to return to the level of investment in 2023 in the private sector, six years in terms of investment in housing (and we will), which are returning until 2022,” he explained.
“These are rooms that raise some questions about restoration in Europe,” the price center added.
The concern of the sluggish economy of Europe has accelerated in recent months after repeated threats by the US administration. US President Donald Trump has already brought the duty to import several key American trading partners and said Europe could be the next goal.
But there is Frequent Movement of Policy On the US position, with pauses, delays and liberations, both negotiations and promises of mutual measures from targeted countries.
“Tariffs are a tax. It is a consumption tax, and production, and we know that taxes have a very obvious impact on the economy,” Sentan said on Friday, warning that no one will eventually receive a tariff war.
One of the striking places for Europe may be the potential pressure on the defense of the European Union, which was introduced earlier this week from the back of acid relations between the US and Ukraine.
If such packages are “well -developed”, they can have a positive impact on the economy of Europe, the price center said.
Germany also this week Announced plans To increase the cost of infrastructure and protection, although the proposal must first undergo several obstacles before it can be implemented.
Further decrease in rates forward?
Centeno also turned to the prospect of the ECB interest rates, and additional finishes were expected.
“We believe that the journey is very clear, although these declines (have been implemented) because the European economy stagnates, we have in our basic inflation forecasting in the medium term up to 2%, but this includes further adjustments in the tariffs,” he said.
However, the Central Bank was supposed to remain “open” and follow the dependence, the approach to the meeting, especially because of the current uncertainty against economic policy, said Sentan.
ECB on Thursday announced its Sixth interest rate Reduced since June last year, receiving its key bet, a deposit rate, another quarter, lower to 2.5%. This step was widely expected by markets.
In a statement in which the decision announced this, the ECB also set up the language it used to characterize monetary policy to say that it is now “much less restrictive”, a change from the previous “restrictive” description.
Interpretation of what it may mean for ahead of speed divorcedWhen some analysts and economists have said they suggested that politicians are becoming more careful depending on the speed. Others say the Central Bank’s statement noted more than a reduction, but that the break in the cutting cycle can be on the horizon.
The markets last time prices for about 57% of the chances of the ECB maintenance, which stabbed during the April session of monetary policy and 43% of the further reduction of a quarter.
In addition to the ECB statement, the markets will probably also consider developments around tariffs and European defense costs in assessing what could come away from the ECB.
“The decision in April will make all the information we will receive so far,” the Central Bank commented.
