Progress report on Europe 2020.

Abstract

The presentation of this Annual Growth Survey, which marks the start of the first "European Semester", comes at a turning point for the European Union. Two years on, Europe is slowly emerging from recession. Recovery is gaining strength and pace, although uncertainties remain on sovereign markets and the financial sector is still being repaired and reformed. As the outlook begins to improve, the time for resolute policy action comes. Bringing Europe out of the crisis has never meant just an orderly return to business as usual. The crisis has exposed fundamental weaknesses of the European economy and revealed growing internal imbalances. Recovery based on sustainable and job creating growth will only be possible if the underlying structural weaknesses are addressed and Europe can use the crisis to trigger a profound transformation of its economic structure.