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WB urges developing countries to safeguard economic growth, as road ahead remains bumpy

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Jim YongKimFour years after the onset of the global financial crisis, the world economy remains fragile and growth in high-income countries is weak. Developing countries need to focus on raising the growth potential of their economies, while strengthening buffers to deal with risks from the Euro Area and fiscal policy in the United States, says the World Bank in the newly-released Global Economic Prospects (GEP) report.

“The economic recovery remains fragile and uncertain, clouding the prospect for rapid improvement and a return to more robust economic growth,” said World Bank Group President Jim Yong Kim. “Developing countries have remained remarkably resilient thus far. But we can’t wait for a return to growth in the high-income countries, so we have to continue to support developing countries in making investments in infrastructure, in health, in education. This will set the stage for the stronger growth that we know that they can achieve in the future.”

Last year developing countries recorded among their slowest economic growth rates of the past decade, partly because of the heightened Euro Area uncertainty in May and June of 2012. Since then, financial market conditions have improved dramatically. International capital flows to developing countries, which fell 30 percent in the second quarter of 2012, have recovered and bond spreads have declined to below their long-term average levels of around 282 basis points. Developing-country stock markets are up 12.6 percent since June, while equity markets in high-income countries are up by 10.7 percent. However, the real-side of the economy has responded modestly. Output in developing countries has accelerated, but is being held back by weak investment and industrial activity in advanced economies.

“From hopes for a U-shaped recovery, through a W-shaped one, the prognosis for global growth is getting alphabetically challenged. With governments in high-income countries struggling to make fiscal policies more sustainable, developing countries should resist trying to anticipate every fluctuation in developed countries and, instead, ensure that their fiscal and monetary policies are robust and responsive to domestic conditions,” saidKaushik Basu, Senior Vice President and Chief Economist at The World Bank.

The World Bank estimates global GDP grew 2.3 percent in 2012, compared with last June’s expectation of 2.5 percent. Growth is expected to remain broadly unchanged at 2.4 percent growth in 2013, before gradually strengthening to 3.1 percent in 2014 and 3.3[1] percent in 2015. Developing-country GDP is estimated to have grown 5.1 percent in 2012, and is projected to expand by 5.5 percent in 2013, strengthening to 5.7 percent and 5.8 percent in 2014 and 2015, respectively. Growth in high-income countries has been downgraded from earlier forecasts, at 1.3 percent for 2012 and 2013, firming to 2.0 percent in 2014 and 2.3 percent by 2015. Growth in the Euro Area is now projected to only return to positive territory in 2014, with GDP expected to contract by 0.1 percent in 2013, before edging up to 0.9 percent in 2014 and 1.4 percent in 2015. Overall, global trade of goods and services, which grew only 3.5 percent in 2012, is expected to accelerate, expanding by 6.0 percent in 2013 and 7.0 percent by 2015.

“The weakness in high-income countries is dampening developing-country growth, but strong domestic demand and growing South-South economic linkages have underpinned developing country resilience – to the point that, for the second year in a row, developing countries were responsible for more than half of global growth in 2012,” said Hans Timmer, Director, Development Prospects Group, the World Bank.

Downside risks to the global economy include: a stalling of progress on the Euro Area crisis, debt and fiscal issues in the United States, the possibility of a sharp slowing of investment in China, and a disruption in global oil supplies. However, the likelihood of these risks and their potential impacts has diminished, and the possibility of a stronger-than-anticipated recovery in high-income countries has increased.

Although fiscal sustainability in most developing countries is not an issue, government deficits and debt are much higher today than in 2007.

“To assure resilience to downside risks, developing countries need to gradually rebuild depleted fiscal and monetary buffers, and improve social safety nets and food security,”said Andrew Burns, Manager of Global Macroeconomics and lead author of the report.

 

Growth outlooks for each country are available in the full report at : www.worldbank.org/globaloutlook

Source: http://www.worldbank.org/
Foto: wikipedia

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Apostolos Tzitzikostas, EPP candidate, elected as new President of the European Committee of Regions: “Together, we must make our Committee the bridge between Europe and its citizens”

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© Apostolos Tzitzikostas Twitter

Governor of the Region of Central Macedonia and EPP CoR member, Apostolos Tzitzikostas,  was elected as new President of the European Committee of Regions.

“Together, we must make our Committee the bridge between Europe and its citizens”, transmitted the new CoR president in his speech.

 

Apostolos Tzitzikostas wants a change of the European Committee of the Regions and presented to the new colleagues a plan based on three pillars: Modernizing the administration, a focused dialogue between citizens and the European Union and establishing an agenda in order to ”make this Committee the point of reference in the European Union.”

The February 2020 plenary session represents the inaugural session for the European Committee of the Regions’ seventh’ term of office.

The European Committee of the Regions is the EU’s assembly of regional and local representatives. Since 1994 its mission has been to represent and promote the interests of local and regional authorities in relation to the European decision-making process. From its Brussels headquarters, the European Committee of the Regions has thus helped to ensure ever closer union of the European nations and territories with decisions being taken at the closest possible level to ordinary Europeans, in line with the subsidiarity principle.

The New Mandate

CoR members and alternates are appointed for 5 years, which is the length of a CoR mandate. The next mandate starts on 26 January 2020 and will last until 25 January 2025. At the beginning of a new mandate, all CoR members have to be appointed, and all organs, including the Bureau, the commissions, the working groups, and the interregional groups have to be re-established. A new President, a new First vice-President and a new Bureau are elected by the members meeting in the first plenary session.

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Head of Romanian EPP MEPs responds to S&D Group leader: Treat Romania differently. You cannot compare PSD’s attacks against the rule of law with EPP Government measures

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© European Parliament Media Center

The actions undertaken against the rule of law by the former Social-Democrat governments in Romania cannot be compared with recent measures announced by the centre-right government, member of EPP family, says MEP Rareș Bogdan, head of the Romanian delegation within the EPP Group in the European Parliament.

In an exclusive statement for CaleaEuropeană.ro, Bogdan responded to critics drawn by Iratxe Garcia, leader of the Socialists and Democrats in the European Parliament. In a Twitter post earlier on Monday, Garcia said EPP Romanian government should take note of Venice Commission, which prohibits changing the electoral law one year ahead of the elections.

The Spaniard MEP advised the Romanian Government against going the ”same path as Poland and Hungary” in ”undermining the rule of law”.

In his reaction, Rareș Bogdan mentioned that we would ask for a discussion with ”Mrs. Garcia to clarify that her statement was made without knowing the reality in Romania and the steps taken by the Orban government”.

“I think there is no bad will, but a simply less unfortunate information about the situation in Romania”, he replied.

”There is no term of comparison” between PSD and PNL, said Bogdan, ”although both parties are from Romania”.

”You cannot compare the continuous attack of PSD against Romania’s strategic partnerships with the EU and the US, against the rule of law (…) with the natural, logical and normal proposal of PNL, using constitutional tools, to introduce a two rounds vote for the local elections in June 2020. The purpose of our proposal is to enhance the representativeness and legitimacy of the elected local politician. By introducing a two rounds election we do not reduce, in any case, electoral rights”, explained the head of the Romanian delegation in the EPP Group.

Moreover, Rareș Bogdan asked that the situation in Romania to be treated ”differently”, considering Garcia’s comparison with the situations in Poland and Hungary.

“My request is that our colleagues in the European Parliament treat Romania as a different situation. Also, pay close attention to the statements of the leaders in Bucharest, led by President Klaus Iohannis and the right-wing Prime Minister Ludovic Orban, who have no connection with the statements made by Romanian officials at the head of the Government or Parliament in the period 2017-2019”, said Bogdan.

 

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Take part in the #EUCanBeatCancer campaign. EPP group urge the Member States to join forces and fight cancer together

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© EPP/ Facebook

EPP Group, the largest political family in the European Parliament, is launching a cancer awareness campaign, the disease that causes one of four deaths in Europe.

Through #EUCanBeatCancer campaign, the EPP group calls for better cooperation between research centers in Europe, more money for cancer research, but also fair and accessible care across Europe for citizens.

© EPP/ Facebook

How can you get involved in the #EUCanBeatCancer campaign

You can join the 1537 citizens already registered in the campaign through 4 simple steps:

  1. You subscribe using the email address HERE
  2. Follow the #EUCanBeatCancer campaign on Facebook, Instagram and Twitter
  3. Use the Twibbon  in the profile picture
  4. Draw the Twibbon symbol and post it in order to show support

Everyone has their own story about cancer, even European politicians or leaders:

 

 

 

 

 

 

 

According to the World Health Organization, one third of cancers are preventable and half of the deaths could be prevented.

Breast cancer is the second most common form of cancer in Romania and in many cases the disease is detected when it is already in an advanced stage.

According to the private health network, Regina Maria, in Romania, 80% of breast cancers are diagnosed in the advanced phase, a stage in which the treatment can not bring healing, but only prolong the survival.

Romania had the lowest rates  (0.2% of women aged 50-69 – 2015) in breast cancer screening.

 

Our multimedia platform – Calea Europeana – has joined the #EUCanBeatCancer campaign. During the campaign informative articles will be published and we will keep you updated with the measures taken at European level to beat cancer.

© CaleaEuropeana

 

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