EU Economic Affairs Commissioner Mr Pedro Solbes has warned today that economic momentum in the euro zone was showing no sign of picking up, as newly released data revealed that industrial output in the zone fell 0.2 per cent in October from September.
He cited "uncertainties" surrounding prospects for a strengthening in domestic demand and said world trade appeared to be weakening.
In addition, according to Mr Solbes, investment has remained sluggish while consumer spending, which gave indications of a recovery in the second and third quarters, is now under threat from "a deterioration in household confidence."
Mr Solbes maintained that respect for the 1997 Stability and Growth Pact was critical to efforts aimed at boosting investor confidence and spending. The pact, among other stipulations, requires euro-zone governments to hold their annual public deficits to less than three per cent of gross domestic product.
Separately, the European statistics office Eurostat reported today that euro-zone industrial production fell 0.2 per cent in October from September and was up 0.3 per cent compared with October 2001.
The sharpest monthly declines were recorded in Luxembourg, 2.4 per cent, The Netherlands, 2.3 per cent, Germany, 2.1 per cent, and Sweden, two per cent. Ireland recorded a fall of 1.6 per cent in October.
In the full 15-member EU, the euro zone plus Britain, Denmark and Sweden, output fell 0.4 per cent in October from September.
AFP