2002 2000
2003 2001
2004
2002 2003 2005
2004 2006
2005 2007
2006 2008
2007 2009 2008
2010 2009
2011
2010 2011 2012
2012 2013
2013 2014
2014 2015
2015 2016 2016
2017 2017
2018 2018
European Finances
The slowdown in Government consumption is continuing due to the spending on areas like immigration and asylum seekers and this has also slowed the decline in government debt in some countries . According to the European Commission ’ s Autumn statement , the EU deficit is reducing slightly faster than previously thought and is now expected to drop from 2.4 % of GDP in 2015 to 2.0 % in 2016 , 1.7 % in 2017 and just 1.6 % by 2018 thanks to rising revenues .
Non-performing loans are still running at high levels causing concerns about profitability and further fragementation . The spread on corporate bonds have also narrowed providing additional lower cost funding sources for the non-financial sector .
With low inflation , improving employment prospects and a supportive exchange rate , excluding the UK , household gross disposable income is set to continue to grow . This means private consumption is expected to remain the main growth driver over the coming years .
1,400 1,200 1,000 800 600 400 200
0
2,500
2,000
1,500
1,000
500
Gross Operating Surplus (€ Millions )
Gross Disposable income : Households and NPISH (€ millions )
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
10,000
8,000
6,000
4,000
2,000
Whilst income inequality remains a hot topic it also seems to be a factor in - - the growing unease in globalisation which is seeing a rebellion against traditional politics and a rise in more nationalistic views . Brexit in the UK and the Repubilcan victory in the US saw the first two populist backlashes against
EU ( right axis ) Germany Spain France Italy Portugal UK
Source : European Commission the establishment . With Italy holding a constitutional referendum in December 2016 , general elections in 2017 in France and Germany and the rise of nationalist parties , the euro and the European Union could come under serious pressure .
European Automotive Report - 2016 Quarter 3 4