Despite holding top-jobs at two of the most important European institutions, European Central Bank President Mario Draghi and European Commission President José Manuel Durão Barroso do not seem to agree on the current state of the euro crisis.
While Barroso claims Europe has managed to overcome its crisis on the basis of recent positive economic results, especially in countries that were subject to financial adjustment programmes, Draghi is erring on the side of caution.
He said last week that he would be “very careful” about declaring that the battle against further contraction had been won – deeming the moment too “premature”.
“”The recovery is there, but it is weak, modest and, as I’ve said many times, fragile,” said Draghi, explaining that “there are several risks, from financial to economic to geopolitical to political, that could easily undermine this recovery”.
One of the risks is the high unemployment throughout the European bloc, which has stayed at a record 12.1% for the past eight consecutive months.
Draghi’s statements came only a day after Barroso said the eurozone crisis would be over this year.
For Barroso, the fact that Ireland has conducted a “clean exit” and is tapping the bond markets again, combined with Portugal’s recent ‘economic recovery’, shows that “adjustment programmes work”.
The recent joining of Latvia – which is now the EU’s fastest growing country – also is a sign that the EU is growing, Barroso added.
Despite their different attitudes, both men are hoping 2014 will be the turning point for Europe’s economy.
