Europe deserves 'solid rating'

The European Union's reputation as a "sclerotic" economic performer is undeserved, according to Dan O'Brien of the Economist Intelligence Unit.

Speaking at yesterday's meeting of the Dublin Economic Workshop Annual Economic Policy Conference in Kenmare, Co Kerry, Mr O'Brien said that Europe's performance, although unspectacular, was "solid".

"As domestic demand in Germany is now set to recover, the single greatest drag on overall euro area economic growth will be removed.

"Indeed, a German recovery could well become an engine for stronger growth elsewhere given that it is the main export market," said Mr O'Brien.

Mr. O'Brien said that economic performance in other major EU countries had been stronger than Germany. "Spain is booming and economic performance in France is relatively normal," he said.

He added that rising costs of pension provision in the Netherlands, Portugal, Germany and France put reducing unfunded pensions liabilities "high on the agenda" in those countries.