Economic and Budgetary Outlook for the European Union 2018

11-01-2018

This study provides an overview of the economic and budgetary outlook for the European Union (EU) in 2018 and beyond. It summarises the main economic indicators in the EU and euro area, and their two-year trends. Economic projections point to robust growth, easing in the future, and falling unemployment. Risks are broadly balanced, but both internal and external challenges persist and may weaken economic recovery. A special 'economic focus' aims to provide a bird's eye view of industry and industrial policy in Europe, and provides an overview of various recent EU-level initiatives. Industry, which is particularly important for generating growth and which provides one in five jobs in the EU, is on a positive path with growing value added, output and employment. The study also explains the annual EU Budget, provides an overview of its main headings for 2018, and sets out the wider budgetary framework – the Multiannual Financial Framework (MFF) – currently covering the years 2014 to 2020. Amounting to €160.1 billion, the 2018 EU Budget focuses on priorities such as promoting sustainable growth, creating employment, especially for young people, and addressing migration and security challenges. While representing only some 1 % of the area's gross national income, the EU Budget has features that increase its overall impact, including the significant share of resources devoted to investment. The debate on the future of the EU Budget, which gained momentum in 2017, should lead to proposals for a post-2020 MFF and reform of the EU´s financing system, which the European Commission is expected to table in May 2018.

This study provides an overview of the economic and budgetary outlook for the European Union (EU) in 2018 and beyond. It summarises the main economic indicators in the EU and euro area, and their two-year trends. Economic projections point to robust growth, easing in the future, and falling unemployment. Risks are broadly balanced, but both internal and external challenges persist and may weaken economic recovery. A special 'economic focus' aims to provide a bird's eye view of industry and industrial policy in Europe, and provides an overview of various recent EU-level initiatives. Industry, which is particularly important for generating growth and which provides one in five jobs in the EU, is on a positive path with growing value added, output and employment. The study also explains the annual EU Budget, provides an overview of its main headings for 2018, and sets out the wider budgetary framework – the Multiannual Financial Framework (MFF) – currently covering the years 2014 to 2020. Amounting to €160.1 billion, the 2018 EU Budget focuses on priorities such as promoting sustainable growth, creating employment, especially for young people, and addressing migration and security challenges. While representing only some 1 % of the area's gross national income, the EU Budget has features that increase its overall impact, including the significant share of resources devoted to investment. The debate on the future of the EU Budget, which gained momentum in 2017, should lead to proposals for a post-2020 MFF and reform of the EU´s financing system, which the European Commission is expected to table in May 2018.