European Еconomic Policy 2024
Between External Shocks, Structural Problems and the Need for a Productivity Boost
The year 2024 was characterised by weak economic growth in both the EU and the euro area. Unemployment nevertheless reached a new low. Inflation in the euro area approached the European Central Bank's inflation target. The latter gradually eased its monetary policy in 2024 and lowered its key interest rates from the middle of the year. Based on the economic weakness and the productivity gap compared to the USA and prompted by the Letta and Draghi reports, the discussion of EU economic policy focused on long-term structural problems. At the beginning of 2025, the European Commission presented a compass for the EU's competitiveness. One aim of the new Commission will be to reduce bureaucracy and simplify EU regulations.