TAILIEUCHUNG - European Economic Forecast Autumn 2012

Nonetheless, a resurgent aggravation of the sovereign-debt crisis with grave consequences for growth and financial stability remains the largest downside risk. This remains intrinsically linked to the risk of slippage or delay with the implementation of policy measures agreed at EU/euro-area and Member- State levels. A downside risk also stems from labour markets, where a deeper drop in employment would weigh on growth prospects going forward. On the external side, the baseline of a soft patch in global GDP growth could be challenged by a sharper-than-expected slowdown in emerging market economies or the materialisation of. | European Commission I I European Economic Forecast Autumn 2012 EUROPEAN ECONOMY 7 2012 The European Economy series contains important reports and communications from the Commission to the Council and the Parliament on the economic situation and developments such as the European economic forecasts and the Public finances in EMU report. Unless otherwise indicated the texts are published under the responsibility of the Directorate-General for Economic and Financial Affairs of the European Commission to which enquiries other than those related to sales and subscriptions should be addressed. Legal notice Neither the European Commission nor any person acting on its behalf may be held responsible for the use which may be made of the information contained in this publication or for any errors which despite careful preparation and checking may appear. More information on the European Union is available on the Internet http . ISBN 978-92-79-22855-1 doi 19623 European Union 2012 Reproduction is authorised provided the source is acknowledged. European Commission Directorate-General for Economic and Financial Affairs COMMISSION STAFF WORKING DOCUMENT European Economic Forecast Autumn 2012 EUROPEAN ECONOMY 8 .

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