FX.co ★ Former ECB head anticipates European recession by year-end

According to Mario Draghi, the former head of the European Central Bank (ECB), by the end of 2023, the European Union's economy will likely face a recession. Nevertheless, the politician asserts that a recession in Europe is almost certain by the end of 2023. He believes that clear signs of a recession will emerge in the first two quarters of 2024, a period that will show the region's economic health better. Draghi suggests that to normalize the situation, the EU needs to strengthen its integration. "Either Europe acts together and becomes a deeper union, a union capable of expressing a foreign policy and a defense policy, aside from all the economic policies. EU countries will not survive other than being a single market," the former ECB president said. Draghi notes that over the past 20 years, the European economy has gradually lost its competitive edge. It is falling behind not only the US but also Japan, South Korea, and China. Draghi believes that the eurozone economy "has lost its presence in several technological fields." Notably, economists had warned that the EU might slide into a recession in August 2023. Analysts believe that the current economic situation in European countries appears more perilous than in the US or China. Next year, the UK and other leading European states may face a recession.