Jean-Claude Juncker reelected at the head of the Eurogroup has dismissed talk of recession.
Luxembourg’s prime minister was presiding over a regular meeting of the zone’s finance ministers, in Nice. Germany and France share his view.
Juncker said: “First of all, one mustn’t say Europe is on the brink of recession; it’s not true. We distinguish between recession and technical recession.”
The euro-zone economy contracted slightly in the second quarter, and the European Commission has said Germany and Spain will probably enter recession, but it stopped short of forecasting a euro zone-wide backslide.
Juncker added: “There’s no question of letting budget deficits get out of control. We do not have the right to make the same errors in 2008 as were made in previous shock periods.”
This would mean sticking to EU budget rules limiting deficits to 3% of gross domestic product.
Juncker further welcomed the recent depreciation of the euro but said it was still overvalued.