European Restructuring Monitor Quarterly - 2010, Issue 3
The pace of recovery following the 2008–9 economic crisis picked up somewhat throughout 2010 with the EU forecast to register 1.7% growth in 2010. Uncertainty however persisted on a number of fronts. Fears of a double dip recession in the US economy were reinforced by weak employment and growth data. Global growth appeared increasingly to depend on demand from developing countries, notably the BRIC bloc.
However, EU competitiveness in global markets was coming under strain as the euro appreciated against other major currencies. And the hangover from the ‘great recession’ persisted in the form of major public and private debt overhangs which were thought likely to serve as a continuing brake on investment and consumption.
Unemployment had been stable at 9.6% over the previous six months but labour market performance – in line with overall economic performance – continued to vary widely across EU Member States. Overall, the return to growth had yet to translate into jobs.