Menu

The Conference Board Leading Economic IndexTM (LEI) for the Euro Area increased 0.7 percent and The Conference Board Coincident Economic IndexTM (CEI) decreased 0.1 percent in November.

In October 2009 the working day and seasonally adjusted current account of the euro area recorded a deficit of EUR 4.6 billion. In the financial account, combined direct and portfolio investment recorded net inflows of EUR 18 billion (non-seasonally adjusted).

The extraordinary remedial actions taken by central banks and governments since late last year have been successful in restoring confidence in, and improving the resilience of, financial systems around the world. Financial system support measures have been addressing the funding challenges of key financial institutions and have bolstered their capital positions. These measures, together with sizeable macroeconomic policy stimuli, set in motion a mutually reinforcing process between financial system conditions and real economic performance, fostering improving business cycle prospects, as well as a fading of systemic risk.

The Conference Board Leading Economic Index™ (LEI) for Germany increased 0.6 percent and The Conference Board Coincident Economic Index™ (CEI) decreased 0.3 percent in October.

What has come to be termed as the "Great Recession" seems to have come to an end in the third quarter of 2009. The rebound in activity reflects improvements in the external environment, in financial conditions and in confidence. But the outlook remains uncertain as the rebound is underpinned by the massive support provided by governments and central banks worldwide which eventually will have to be scaled back and depends on the ability of the banking sector to increase the present levels of lending to the economy. The continued, albeit more moderate, increase in unemployment is a source of concern both socially and economically.

EU27 real agricultural income per worker has decreased by 12.2% in 2009, following a decrease by 2.5% in 2008, according to first estimates issued by Eurostat, the Statistical Office of the European Communities. This decline results from a reduction in real agricultural income (-14.2%), together with a fall in agricultural labour input (-2.2%). These estimates for the EU27 are based on data supplied by the national authorities in the Member States.

The first estimate for the euro area (EA16) trade balance with the rest of the world in October 2009 gave a 8.8 bn euro surplus, compared with -1.2 bn in October 2008. The September 20092 balance was +0.9 bn, compared with -6.0 bn in September 2008. In October 2009 compared with September 2009, seasonally adjusted exports fell by 0.2% and imports by 2.2%.

New EU telecoms rules composed of the Better Regulation Directive and the Citizens’ Rights Directive will need to be transposed into national laws of the 27 EU Member States by June 2011. The new Regulation establishing the new European Telecoms Authority called "Body of European Regulators for Electronic Communications (BEREC)" is directly applicable and will enter into force in 20 days. BEREC will provide a force for consistent regulation across Europe strengthening the single telecoms market.

The 2010 EU budget will see jobs and the economy top spending. Over €64bn (or 45%) of the €141bn of EU funds will go on measures linked to research, education and innovation. Research funding will grow by nearly 12% (€7.5bn) and energy and transport by more than 10% (€2bn). Financing for strategic energy projects, broadband in rural areas and cash to help rural communities cope with new challenges in agriculture will also provide a welcome boost to Europe's economy with the final €2.4bn of the €5bn European economic recovery plan being secured for 2010. Agricultural spending will continue to be stable next year at nearly €44bn with over €14bn (+2.6%) to promote rural development and additional emergency aid of €300m to help milk producers. The biggest increase in EU spending in 2010 will be for projects to fight crime, terrorism and manage migration flows, with this area growing by 16.2% on 2009 to almost €1bn.

In the construction sector, seasonally adjusted production decreased by 0.6% in the euro area (EA16) and by 0.4% in the EU27 in October 2009, compared with the previous month. In September, production fell by 0.8% and 0.5% respectively.